Real estate investments can provide income and diversification from "summary" of All About Asset Allocation, Second Edition by Richard Ferri
Real estate investments offer a unique combination of income and diversification that can enhance a portfolio's overall risk-adjusted return. Income from real estate can be generated through rental payments from tenants, providing a steady stream of cash flow that can supplement other sources of income. This income can help to reduce reliance on traditional investments such as stocks and bonds, which may be subject to market volatility. Additionally, real estate investments have historically exhibited low correlation with traditional asset classes like stocks and bonds. This low correlation means that real estate returns may not move i...
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