For me, it's hard to get excited about stocks at these valuations when I can add to my rental portfolio and earn 15 - 20 % cash
on cash returns quite easily before accounting for any appreciation and loan paydown... of course you have the headaches of managing tenants and maintenance issues, but even if you pay a 10 % management fee, the numbers are still a lot better than average stock returns.
Not exact matches
It's
quite possible, though risky, to get a larger
return on the
cash sum if it's invested wisely.
It's
quite possible, although risky, to get a larger
return on the
cash sum if it's invested wisely.
So Absolute
Return is used the way most of us would use bonds or
cash — and Swensen has his own position
on why bonds are
quite risky investments... As for retail investors, AQR have funds like QSPIX which (so far) seem to fit Yale's criteria as well as anything
We selected a guy who suggested that a 14 %
return on our investments was
quite doable if we socked away about 80 % of our
cash in equity mutual funds.
Also plotted is the downside
return relative to
cash or money - market, since while these funds have held up fairly well
on absolute terms,
on relative terms the potential for under - performance is
quite clear.
Because investment managers generally don't control the timing and magnitude of external
cash flows (that is, investors» contributions and withdrawals), they
quite properly report
returns on a time - weighted basis.
But given the low
return on cash over the period, any dividends would change the relative attractiveness
quite a bit.
These policies are
quite flexible, and are similar to indexed universal life, except that the
return on the
cash value is based
on a rate that is fixed by the offering insurance company.
The monthly premium costs are
quite a bit higher each month, and while you do build
cash in the policy, the rate of
return on whole life insurance policies is not good.