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Transcript: Transcript

Q&A with Kristina Hooper

Within the alternatives space, what are your thoughts on real estate? 

 

Answer (footage of Kristina)

What's really interesting about real estate is that a lot of it is not cyclical. I think many investors don’t necessarily realize that at first blush. It can include student housing, it can include medical buildings, self-storage, a whole variety of areas that are not tied to the economic cycle. So, for me, what we're hearing and seeing right now is, is there's a lot of interest in real estate for the income it generates, and I think that makes sense. 

 

Question (words show on screen): 

Q&A with Kristina Hooper

Are there any other alternative asset classes you’re watching closely?

 

Answer (footage of Kristina) 

Another area of opportunity is floating rate loans. Of course, they can benefit from a rising rate environment.

And because economies like the US have been quite resilient, credit quality is good. So, this is a very attractive area and one that can offer diversification benefits for those with a core fixed income portfolio. 

 

 

Important Information:

All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed.  This is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor in an investment making decision. As with all investments there are associated inherent risks. This should not be considered a recommendation to purchase any investment product. This does not constitute a recommendation of any investment strategy for a particular investor. Investors should consult a financial professional before making any investment decisions if they are uncertain whether an investment is suitable for them. Please obtain and review all financial material carefully before investing. Past performance is not indicative of future results. There is no guarantee that the investment objectives of the strategy will be achieved.

 

The opinions expressed are those of the author as of May 2023, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.

 

Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under license. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities.

 

Published: August 2023

Exploring alternatives in a rising rate environment

Chief Global Market Strategist Kristina Hooper shares her views on why real estate and floating rate loans could be attractive areas of opportunity despite rising rates. What could these alternative asset classes mean for income generation and portfolio diversification?

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