The best investment fund managers are always looking for the next big hedge.
It’s certainly true at this moment in time, where many countries are experiencing the worst economic decline since the The Great Depression.
So what is the next big hedge?
Well, some investment fund managers believe it’s property.
Now, let’s be clear – property is a long-term play. But having spoken to a variety of investment fund managers, the logic behind investing in property at this time is relatively simple.
First, the property markets (both residential and commercial) are not immune from the effects of COVID-19. Lack of demand has significantly hit prices. Plus, there’s persistent uncertainty about the long-term future of working in offices.
But, despite the current sentiment, property still has long-term utility.
Put simply, people will always need places to live, while some businesses will always need physical premises. The task for an investment fund manager is to choose properties that will serve these needs in a five year time frame.
Ultimately, this is why some investment fund managers view this moment as a good opportunity to buy.
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