The perfect asset class for stock investors raising cash on rallies

In this week’s edition, I’m going to help lay out a salient strategy for addressing what is on every client’s mind – should I sell into the next rally? This past Monday saw the major stock market averages spike over 7% higher in reaction to new data showing a slowing a new cases and death rate for the Coronavirus. The market was already retesting the March 23 lows with many Wall Street bears talking their book (short-sellers ) and calling for lower lows. Fear had totally gripped investor sentiment at CBOE Volatility Index (VIX) shot up to 85.47 and a
View Article

How To Maintain & Build Your Practice In The Next 30-Days

Following a nasty stock market correction where the S&P shed 34% and then rebounded off the recent low of 2190, every professional manager is trying to determine if the recent rally off the low is a “dead cat bounce” or the beginning of a “V-shaped” recovery. Opinions are pretty much split right down the middle, but the prevailing narrative, I believe that the market may endure a retest of some magnitude. In light of this total confusion, clients that are heavily invested in stocks and experiencing the wild swings are likely asking themselves whether they should lighten up on the
View Article

Prepare Now For The Next 180 Days

The ground has radically shifted under the stock market, and though there will likely be some form of recovery, it will likely run into a massive wave of selling into strength by clients that are determined to lower their exposure in their equity portfolio following such a gut-wrenching correction. For many clients that are holding big positions in featured stocks that are down by as much as 50%, getting back half of those losses will feel like a win, so as to secure the lion’s share of the gains from the last 10-year rally. Many clients that do follow this
View Article

Immunize Your Client From Stock Volatility

In this week’s edition, I’m going to focus on how an alternative investment strategy in Opportunity Zones can act as a stabilizing force and asset to offset chaos in client’s equity holdings. Stock markets are widely understood to be capable of becoming extremely overbought as well as being extremely oversold. Against a wild stock market landscape, there are 9,600 mutual funds and over 6,400 Exchange Traded Funds (ETFs) all vying for a piece of the 3,670 stocks in that are listed in the U.S. Couple this log jam of supply and demand with the fact that over 70% of daily
View Article

Sleep Soundly with Volatility

In this fourth weekly edition, I’m going to highlight how an alternative investment strategy in Opportunity Zones provides a highly appealing way to diversify portfolios that offset the risk of black swan events like the Coronavirus situation. Severe market volatility is putting great stress on stock portfolios and clients with long term deeply embedded capital gains are questioning whether to lighten up on stock exposure as corporate guidance for earnings expectations is being reset broadly lower. A wave a closures, cancelations and quarantines are essentially shutting down all manner of everyday activity for businesses and consumers that is having a
View Article

Opportunity Zones and No Depreciation Recapture

In this second weekly edition in a series of newsletters, I’m going to highlight one of the big time tax benefits of investing in Opportunity Zones – depreciation recapture is eliminated upon sale of certain properties. Most of us are quite familiar with how Master Limited Partnerships (MLPs) work in regards to distributions. In a typical MLP structure, investors receive a share of the distributed income along with a portion of depreciation and depletion allowances. Generally speaking, for every dollar of distribution per unit that is paid out, the cost basis of that same unit is reduced by $1.00 as
View Article

Opportunity Zones and Coronavirus

Cody Laidlaw here, Editor-in-Chief at Belpointe REIT, the first and only publicly traded Opportunity Zone structure, with the goal of bringing informed opinions and facts to the forefront of discussions regarding all things encompassing and investing in Opportunity Zones for the Registered Investment Advisory (RIA) community. This forum is dedicated to leveraging success from existing and new businesses. On a weekly basis, I’ll be highlighting specific views and benefits of investing in Opportunity Zones with the goal of dissecting the investment proposition that makes it easy to understand and communicate with clients that are suitable for such an investment. In
View Article

Opportunity Zones – What are They and Why Should Your Clients Invest in Them

Welcome to the inaugural issue of Opportunity Zone Confidential. I’m Cody Laidlaw, Editor-in-Chief at Belpointe REIT, the first and only publicly traded Opportunity Zone structure, also with the goal of bringing informed opinions and facts to the forefront of discussions regarding all things encompassing and investing in Opportunity Zones for the Registered Investment Advisor (RIA) community. As you’re about to learn, the goal of this publication is to help RIAs realize greater success by leveraging existing and new business. In this first in a series of newsletters I will review some of the ins and outs of Opportunity Zones and
View Article