USA A-OKAY
Media sensationalism surrounding the US sub-prime crisis may have spooked investors, but with proper due diligence there is no reason to fear the US property market, according to MAB Rosenthal president David Rosenthal.
Visiting the US-based business’ Australian partner, MAB Funds Management, to discuss new investment opportunities for the MAB International Retail Trust, Rosenthal told Money Management that despite recent events, investors should still feel comfortable maintaining a long-term interest in the US.
“Such events simply demonstrate the need for investors to diversify their investment portfolio, seek professional advice from experts and be aware of risk, but my advice is certainly don’t shy away from US markets,” he said.
“For some categories of borrowers in the USA, debt is now not as easily available and is more expensive. While this may lead to a tempering of demand for property, it should also lead to some good buying opportunities.”
According to Rosenthal, shopping centres catering for essential products, such as grocery stores, are an example of lower risk investments.
Dubbing these investment opportunities “recession-proof”, Rosenthal said they provided strong, secure cash flows and have proven to be resilient performers over time and throughout various market cycles and events.
The US property expert favours the retail property market of South-East USA, which is currently experiencing strong population growth.
Recommended for you
Far too few wealth managers are capitalising on the opportunity presented by disruptive technology to deliver personalised investment solutions to the mass affluent demographic, according to PwC.
With over half of advisers using managed accounts, HUB24’s head of managed portfolios has unpacked the benefits driving their usage and how they can be leveraged by advice practices.
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
ASX-listed platforms HUB24, Netwealth, and Praemium have used their AGMs to detail how they are using artificial intelligence to improve their processes and the innovative opportunities it presents.
