RECENT ASSET ALLOCATION TRENDS AND SHIFT TO REAL ESTATE
TIGER 21’s Founder, Michael Sonnenfeldt, appeared on CNBC’s Power Lunch to discuss recent asset allocation trends based on TIGER 21 Members’ Quarterly Asset Allocation Survey, primarily the increase in allocation to Real Estate. Key takeaways include:
- At an allocation of 32%, Real Estate remains ‚ÄòKing’ among TIGER 21 Members, up from the 25%-26% range seen historically.
- Fixed Income and Hedge Fund investments have hit an all-time low at 9% and 5% respectively. Meanwhile, Members’ Public Equity allocations remain at 21%.
- Real Estate investments are preferred among high-net-worth investors because they are “income-producing, tangible, and you can own it directly.”
- Equity assets such as Real Estate, Public Equity, Private Equity, and Hedge Funds, have collectively reached an all-time high of 80% of Members’ portfolios. In this low interest rate environment, investors must reach for equity for higher returns.