Lessons Learned at a Financial Symposium Submitted by Jerry Cohen on Wed, 08/05/2009 - 15:44 I spent some days recently at the Agora Financial symposium in Vancouver, British Columbia. Besides the fact that Vancouver has great Asian food, I learned several things.

One thing I learned is that most of the big-name analysts who were there don't believe the market has bottomed. This includes, by the way, Doug Casey. As a result, most of their investment recommendations were "defensive."

Defensive investments involve, by definition, the basic necessities of life. These are the things that people don't cut back on -- even in hard times. They include metals, industrial commodities, agricultural products and energy.

Most folks don't think of housing when we think of necessities, but they clearly should. What is more essential than housing? I think the main reason that people don't think of real estate as an investment instrument is simply that there are so few ways to invest directly in managed properties -- the EquityBuild way.

Moreover, real estate differs from other necessities in that it is all local. When we talk corn or copper, there's one price. Real estate, however, varies radically by location. So you need to invest in the right area.

Properly located real estate has several unique qualities as an investment class that favorably distinguish it from virtually every other sector. Banks and mortgage companies continue to be willing to lend 75% or more of it's value.

There are many markets where it can be rented, producing real time, ongoing profits while the income pays off the loan. The result is that 75% or more of the asset value is purchased for the investor by someone else. It is also tax-advantaged in ways no other investment class is.

On top of that, demand for rental units is exploding in many, many markets around the country. Rents are rising while the cost of money and property is aberationally low.

Finally, residential real estate is the ultimate inflation hedge. If the combination of these features don't make real estate the investment to buy and now the time to buy it, I'll wait patiently until the analysts offer me a more compelling investment alternative. Until then, I'm in residential, rental real estate and I'm in with both feet and more excitement than I've had in a long, long time.



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