Why The Smartest Money Isn’t Worried About The Stock Market Collapse

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It’s no secret that the stock market has taken a big hit recently. Most understand that while there may be a short rebound, it’s likely to tip into the negative for quite a while, so why aren’t the richest and smartest investors and fund managers concerned?

One big reason is that the smart money was the first to get in the beginning of the sell off. They even started it, followed by smart algorithms which saw a deeper sell off coming. Many of these investors also weren’t gambling on the cryptocurrency craze which has gripped so many get rich quick mentality investors. What have they been investing in instead?

There has been a dramatic shift in the portfolio balances of big funds and sophisticated wealthy investors from a few decades ago. Many got burned in the last bubble, after the party of 1999 left them with a big hangover. They made a substantial move from relying on domestic stocks and bonds, to international investments, and alternatives like venture capital and real estate.

The largest and smartest like Harvard, MIT, Yale, Canadian pension funds, Norway’s giant sovereign fund, and Blackstone are heavy in real estate. The largest have even more than 50% of portfolios in these alternative assets today. They know that even if the great yields they have been enjoying dim slightly after 2020, they are still anchored by tangible assets that aren’t going anywhere.

You don’t need a billion dollars to have a billionaire’s investment strategy and wealth plan. Everyone has to start somewhere. With a good portfolio mix, real estate for passive income later and in soft periods, and real estate for safety and hard assets can make a massive difference in long term investment returns and wealth. You can’t start over or switch if you have nothing left to reinvest. That’s what has repeatedly happened to many dabbling in stocks or fad investments like cryptocurrency.

What types of real estate do they invest in? Track their investments and balance sheets and you’ll see it is largely income producing real estate. For example; office buildings, retail, and multifamily apartments, or mixed use properties which combine two or more of these types of property types.

Summary

If you invest smart, you don’t have to fret about wild turns in the market, emotional sell-offs, and over-corrections. You don’t even have to learn these mistakes and lessons with trial and error yourself. Focus on how the smartest have evolved their portfolios after having learned the hard way, and don’t worry about the rest of the herd. Stay ahead of them by making the best money moves first.