From a small northwestern observatory…

Best of months… worst of months… Most months — indeed, nearly all months — ACCRE’s goal is to attenuate the downturns (thus providing important diversification in the portfolio) and fully enjoy the “bull markets”. Most of the time this works just fine. However, the double whammy of an overall down market, coupled with continued concern in the real estate sector, put us in a bear squeeze in September.

We’ve been in business for 42 months, and and a dollar invested at the inception would be worth $1.63 today, or an annualized ROI of right at 14%. That’s not bad, but certainly could be better. By comparison, if that same dollar had been invested in the S&P, it would be worth $1.42 today, for an annualized return of about 10%. We’re certainly doing well, but the negative currents in real estate have made 2020 a tough year indeed. By comparison, had that same dollar been invested in the S&P Global Property Index, it would only be worth $1.06 today.

I’m sure we’ll revisit our portfolio makeup this month, and as usual, our premium subscribers will receive notification as soon as any such trades are made. In the meantime, if you have any questions about this or any other real estate related matter, please let me know.

John A. Kilpatrick, Ph.D., MAI — john@greenfieldadvisors.com