I found a great article by Denis Kleinfeld on the Moneynews.com website that talked about real estate as an investment vehicle and I wanted to pass it along.
Here’s the piece:
I know that many people are unhappy with the way their money managers have been handling their investment portfolio. This becomes readily apparent to me every time I sit in one of those meetings between the client and their investment advisers.
The meeting pattern is so predictable. First, the review of the current portfolio holdings explaining that while they didn’t meet the benchmarks, the portfolio did better than others did. The implication being that it was a good thing that they were handling the investments otherwise the client would have lost more money with the other guys.
Second, the presentation of the predicted investment climate for the next month or quarter is made. All sorts of glossily printed charts and graphs based on something called data tell the future in mathematical terms. The chief economist of the firm has pronounced what will happen and the client is expected to dutifully be in awe of his brilliance.
You would think that listening to these guys that the world of investment consists of primarily stock and bonds and something called alternative investments.
I have the impression that they lump everything they actually know little about into the alternative investment category.