Adding Private Real Estate To Your Portfolio: Considerations For Investors

Andrew Sinclair is CEO and Principal of Midloch Investment Partners, a real estate investment fund manager and operator based in Chicago.

Most Americans own stock, also known as equities, in publicly traded companies. More precisely, says Gallup, 62% of American adults own stocks directly, through mutual funds or in their retirement accounts. Bonds, which are debt securities issued by government entities and corporations, is another common asset class. Cash and cash equivalents are frequently held, too.

It makes sense for Americans to invest in equities because the stock market is highly liquid; you can buy or sell shares virtually anytime. Plus, the stock market’s track record is pretty good. Since the late 1920s, the average annual return is about 10%.