Last weekend Zenolytics highlighted Single Family Residential REITs as an attractive investment for conservative portfolios.
There is nothing exciting about buying a basket of homes, fixing them up, maintaining them over time and rotating tenants. In fact, it sounds like a burdensome way of cultivating investment capital.
Nevertheless, it's what works in the current market. It's boring as hell. It's cumbersome. It doesn't involve the latest microchip or revolutionary software. It's houses being rented to a growing list of individuals that for whatever reason can't or won't purchase a home.
Being boring has a time and place in every portfolio. Current market conditions are an example of that time or place.
Here's the rub: It's not going to transition quickly to a market where maniacal positions in tech, financials and generally happy, go lucky market sectors are rewarded. The markets have been mired in a sideways dystopia since January of 2018. Close to 18 months of nothing on the S&P but anxiety over everything from recession, to debt, to global trade.
Go ahead and embrace the boring as capital preservation takes precedence over anything else until further notice.
