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The Bull is Finally Showing Its Age

A trade-induced drag on global manufacturing has markets in disarray. Heightened equity volatility and lower bond yields are forcing investors to find alternative options. This comes as the Fed seeks a last-gasp attempt to pull the economy away from the edge.

What a Difference A Year Makes

Equity Volatility Has Climbed*

Bond Yields Have Plummeted**

Lower Rates Have Reset Your Options***

A Slowdown in Core Puts the Emphasis on Active Management

Real estate fundamentals typically move slowly, so the recent rapid deceleration in core private equity real estate appreciation requires your attention. Read our Q3 Real Estate commentary for full details.

Third-Party Appraisals

The Problem

It appears that third-party appraisals have lagged the rapid changes in retail, and are only now lowering their valuations to reflect higher cap rates, slower growth, and higher CAPEX requirements.

Cap Rates and Interest Rates

The Problem

Most private funds use fixed-rate leverage to boost returns. When rates fall, the value of that debt rises, lowering net asset values. Historically, higher building values offset this paradigm; but this is not the case today with historically low cap rates in place.

A New Way Forward

Potential Solution

We believe that a healthy consumer will boost sectors such as apartments, hospitals, and senior housing. In our view, value-add strategies may offer a more attractive total return moving forward.

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Household Debt to GDP at 15-year Low

St. Louis FRED, courtesy of the International Monetary Fund. U.S. Household Debt to GDP. 1/1/05-1/1/19. Latest information available.

Healthy Consumers May Aide Credit Markets

We believe healthy consumers will help avoid a repeat of 2008. Muted U.S. household debt will keep consumers spending, limiting the defaults that impact assets with a historically consistent income stream.

Why Credit May Be A Haven +
Resource Growth Lines

The Search for a Haven

Finding the balance of risk and return may require going beyond traditional thinking. Listen to our portfolio managers’ thoughts on real estate and credit markets.

Listen to Podcasts +
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Resource is the marketing name for Resource Real Estate, LLC, Resource Alternative Advisor, LLC, and their affiliates. Resource may distribute certain products through Resource Securities LLC, a wholly owned broker/dealer, Member FINRA/SIPC

 

The information contained herein does not constitute an offer to sell or a solicitation to purchase securities. Such offers or solicitations can only be made by means of a prospectus. Prior to making any investment decision, you should read the applicable prospectus carefully and consider the risks, charges, expenses and other important information described therein. The value of your investments may decline, and you could lose some or all of your investment. To obtain a prospectus containing this and other information, please call (866) 773-4120 or download the file from www.ResourceAlts.com. Read the prospectus carefully before you invest.

 

Resource has two interval funds that are distributed by ALPS Distributors, Inc. (ALPS Distributors, Inc. 1290 Broadway, Suite 1100, Denver, CO 80203). Resource Alternative Advisor, LLC, Resource Real Estate, LLC, their affiliates, and ALPS Distributors, Inc. are not affiliated.

 

Performance data quoted represents past performance. Past performance is no guarantee of future results and investment returns and principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted above. For performance information current to the most recent month-end, please call toll-free (866) 773-4120 or visit www.ResourceAlts.com.

 

All statements and information other than statements of historical fact included on this website regarding strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. When used on this website, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. You should not place undue influence on these forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make on this website are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved because of the number of risks and uncertainties, many of which are beyond our control, including but not limited to uncertainties concerning the properties being operated and sold or refinanced, leverage and meeting debt service obligations, operating properties in different locations throughout the U.S., general, market or business conditions and changes in laws or regulations. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf. To check the background of Resource Securities LLC or any registered individual, please go to FINRA’s BrokerCheck.