TurnerStreet
In a stunning, and not the first this year, Blackstone is defaulting on a property backed bond it issued: see here.
Investors should note if that with interest rates rising, still, there will in more defaults associated with property investments. Offices are difficult to repurpose into residential, so don’t try to “catch the falling knife”.
Cash is still king.
Question: if the world’s largest asset manager, Blackrock (BlackRock’s Pitch for Socially Conscious Investing Antagonizes All Sides – The New York Times), does environmental, social and governance (“ESG”) for investors, why won’t TurnerStreet?
Answer: ESG means different things to different investors (e.g. is nuclear green?), and what we think determines to be ESG responsible might not suit a particular client.
Hence, TurnerStreet’s product design is about the investor-client telling us what they want excluded from the performance benchmark for ESG reasons. With technological advances it is straight forwward, and relatively cheap, to have a client specific benchmark. This makes it possible to measure our worth as an investment manager, and for the client to quantify the cost of their ESG decisions against a traditional benchmark.
Blackrock can tell clients what are ESG investments, but we aren’t as presumptuous.
Question: Is this true (How Ordinary Americans Can Also Buy, Borrow, And Die Without Paying Taxes)?
Answer: Yes. The asset allocation (“AA”)decision, the most important in investing, is often driven by expected returns and risks of various asset classes. However, if you are wealthy it is often driven by tax. The “buy, borrow, and die with paying taxes” strategy will shift AA.
Question: why should I be interested in asset allocation?
Answer: asset allocation is where investors make the most money over the medium and long term. Trying to pick the “hot” stocks or next “new thing” works for 0.000001% of investors.