Millionaire investor and host of CNBC’s “Mad Money” talk show Jim Cramer is moving away from speculative assets. This is not surprising, as the Federal Reserve’s aggressive stance sent shockwaves through markets, with stocks pulling back from their July highs last month.
During his speech at the Jackson Hole economic summit, Federal Reserve Chairman Jerome Powell said the Fed is committed to raising interest rates to offset the inflation problems, although they cause “some pain” to American businesses and families. After that, Cramer said on his show that it’s time for investors to “stop doing stupid things with [their] money.”
Crypto Winter to continue
Cramer, who was once an advocate for the cryptocurrency, recently admitted that he no longer considers Bitcoin a store of value. This is because the scenario of rising interest rates is likely to harm speculative assets more.
He also recognizes that some good investments may experience a temporary pullback due to the volatile market environment. As a result, popular decentralized tokens – including Bitcoin and Ethereum – are expected to decline in value in the short term.
On that, Cramer said: “This is what it looks like when the Fed gets serious. … What matters is that we have to get through this intact. Don’t be meme. Don’t get SPAC’d. Don’t encrypt yourself. And you will pass through this thicket and find yourself at a much better time when we are sufficiently sold for a big leap.”
Check out: Want to protect your portfolio from a recession? Some say buy farmland
Real estate for victory
While Cramer is moving away from risky speculative instruments, he is of the opinion that real estate investments can earn substantial returns on investment. The current US housing crisis has resulted in skyrocketing rents in major cities.
While investing in physical properties may not be financially viable, residential apartment real estate investment funds (REITs) can be one of the best investment avenues right now. This is because REITs are required to distribute 90% of their taxable earnings to investors.
“With rents skyrocketing across America and a housing crisis uncertain because of mortgage rates, you might want to own one of the best apartment REITs,” Cramer said of four promising residential REITs in April.
Today’s Real Estate Investment News Highlights
O CalTier multifamily portfolio fund recently completed a new investment in a portfolio of four multifamily properties comprising 185 units. The CalTier Multi-Family Portfolio Fund is one of the few untraded real estate funds available to non-accredited investors and has a minimum investment of $500. Year-to-date, the fund produced an annualized return of 7.02%.
The real estate investment platform backed by Bezos arrival houses launched a new batch of offerings to allow retail investors to buy shares in single-family rental homes with a minimum investment of $100. The platform has financed over 150 properties with a total value of over $50 million. .
Find more real estate investment news and offers at Benzinga Alternative Investments
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