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Real equity returns may be 3-3.5% over the next 20-30 years, they reckon.
Real equity returns might average only 5% a year over the next decade, compared with annual returns of 25% over the four years to 1996.Wild parties tend to lead to long hangovers.
Real equity returns in the lowest quintile for inflation were 11.7% a year.Just as surprisingly, perhaps, the professors find that returns from commercial property and residential housing are also negatively correlated with inflation.
"It's a real equity issue.
That comes to a real equity return of 5.4% (the calculation is geometric, not arithmetic).
But there is a positive correlation between aggregate real GDP growth and real equity returns (0.51).Why the big difference?
Similar(12)
When the family decided to sell the farm, McCann Real Equities Development bought an option on the farm, and presented plans to build a supermarket there.
The Port Authority has negotiated with a developer, McCann Real Equities, to build a movie multiplex on the roof of a connected building across Broadway.
Tangible equity measures real assets such as factories and machinery.
iFunding - this real estate equity crowdfunding platform chose the route of equity crowdfunding itself through the Crowdfunder platform.
Reinvests via private investment vehicle MSD Capital: equities, real estate, private equity.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com