Billionaire investor and host of CNBC’s ‘Mad Money’ Jim Cramer moves away from speculative assets. This is not surprising as the US Federal Reserve’s hawkish stance has sent shockwaves through markets, with stocks falling 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 combat inflationary woes, even though they will cause “some pain” to US businesses and households. 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, once a proponent of crypto, recently admitted that he no longer views Bitcoin as a store of value. This is because the backdrop of rising interest rates is expected to hit speculative assets more.
It also recognizes that some good investments may experience a temporary withdrawal due to the volatile market environment. As a result, popular decentralized tokens – including Bitcoin and Ethereum – are bound to drop in value in the short term.
On this, Cramer said: “This is what it looks like when the Fed gets serious. … What matters is that we just have to get through it intact. Don’t take memed. Don’t get the SPAC. Do not encrypt. And you’re going to get through that thicket and you’re going to be in a much better time when we’re oversold enough for a huge recovery.”
Check Out: Want to protect your portfolio from a downturn? Some say Buy Farmland
Real Estate For The Win
While Cramer steers clear of risky speculative vehicles, he is of the opinion that real estate investing can yield a significant return on investment. The current US housing crisis has caused rents to skyrocket in major cities.
While investing in physical real estate may not be financially feasible, residential real estate investment trusts (REITs) may be one of the best investment avenues right now. This is because REITs are required to distribute 90% of their taxable profits to investors.
“With rents soaring across America and an uncertain housing crisis due to mortgage rates, you may want to own one of the best apartment REITs,” Cramer said of four promising housing REITs in April.
Highlights of today’s real estate investment news
The CalTier Multi-Family Portfolio Fund recently completed a new investment in a portfolio of four apartment buildings consisting of 185 units. The CalTier Multi-Family Portfolio Fund is one of the few non-traded real estate funds available to non-accredited investors and has a minimum investment of $500. Year to date, the fund has produced an annual cash return of 7.02%.
The real estate investment platform backed by Bezos Homes arrived launched a new batch of offers to allow retail investors to buy shares in single-family rental homes with a minimum investment of $100. The platform has already financed over 150 properties with a total value of over $50 million.
Find more real estate investment news and deals at Benzinga Alternative Investments
Photo by s_bukley on Shutterstock
See more from Benzinga
Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.