Real Estate Continues to Lead Stocks as Americans’ Choice for Best Long-Term Investment Americans think that real estate is the best investment vehicle compared to other investments, such as stocks, bonds or gold. Image: Gallup
Valuation – Real Assets vs. Financial Assets The price of real assets relative to financial assets is at all-time lows since 1925. Should investors own more precious metals and real estate? Image: BofA Global Research
FMS Investors – What Is the Most Likely Source for a Systemic Credit Event? FMS investors still see the US/EU commercial real estate as the biggest source of a systematic credit event. Image: BofA Global Fund Manager Survey
Cross Asset and Equity Sector Annualized Total Returns Commodities, small-cap value stocks and real estate worked in the stagflation of the 1970s. Image: BofA Global Investment Strategy
Loan Demand Demand for commercial & industrial (C&I) and commercial real estate (CRE) loans remains weak, which does not bode well for a soft landing. Image: BofA Global Research
U.S. Housing Starts and New One Family Houses Housing starts declined 0.5% in November. Usually, a continued downturn may signal a contraction of the economy. And historically, a decline in residential real estate has led several recessions. But housing is already in a slump and shouldn’t cause a recession.
YTD Returns and Cumulative Losses for Different Asset Classes About $22 trillion lost in equities, bonds, real estate and cryptocurrencies since the beginning of the year. Image: BofA US Equity & Quant Strategy
Mortgage Rates – Bankrate 30-Year Mortgage Rate Historically, rising mortgage rates tend to cool the real estate market. Image: BofA Global Research
Consensus Dividend Growth YoY by Sector Real estate dividends are expected to increase by 10% in 2022. Image: BofA US Equity & Quant Strategy
S&P 500 GICs Level 1 Sector Weekly Relative Rotation Graph Technology and discretionary are weakening. Industrials and materials are leading. Financials, utilities, staples, health care and real estate are improving. Energy and communication services are lagging. Image= BofA Global Research