Nonfinancial specialty — or real — assets have benefited this year from both long-term trends such as economic development in emerging markets and, in the United States, a strengthening in the overall economy. Three specialty areas in particular — commercial real estate, farm and ranch land, and timberland — have benefited noticeably from these trends and, we think, currently offer value as investments.
Investing involves risk. There is always the potential of losing money when you invest in securities.
Projections made may not come to pass due to market conditions and fluctuations.
Past performance is no guarantee of future results. Diversification does not ensure a profit or protect against loss in declining markets.
Always consult with your independent attorney, tax advisor, investment manager and insurance agent for final recommendations and before changing or implementing any financial, tax or estate planning strategy.
OTHER IMPORTANT INFORMATION
International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in financial standards, and other risks associated with future political and economic developments. Investing in emerging markets may involve greater risks than investing in more developed countries. In addition, concentration of investments in a single region may result in greater volatility.
Nonfinancial assets, such as closely held businesses, real estate, oil, gas and mineral properties, and timber, farm and ranch land, are complex in nature and involve risks, including total loss of value. Special risk considerations include natural events (for example, earthquakes or fires), complex tax considerations and lack of liquidity. Nonfinancial assets are not suitable for all investors.
Real Estate Investment Trusts (“REITs”) involve a significant degree of risk and should be regarded as speculative. They are only made available to qualified investors under the terms of a private offering memorandum. Holdings in a REIT may be highly leveraged and, therefore, more sensitive to adverse business or financial developments. REITs are long term and unlikely to produce a realized return for investors for a number of years. Investments in real estate securities can be subject to fluctuations in the value of the underlying properties, the effect of economic conditions on real estate values, changes in interest rates and risks related to renting properties, such as rental defaults.