Few would disagree that a strong regulator is required for a strong superannuation system. But APRA’s myopic focus on cost to members means its $70,000 Christmas party is unlikely to help its reputation.
Good investing requires real sacrifices, according to Oaktree’s Howard Marks, but you can’t expect to be compensated just for making them.
2022 Global Real Estate Outlook
Late-Cycle Investing Philosophy Comes Early
2021 marked the most rapid economic recovery witnessed in the U.S. over the past four decades. As a result, inflation has reached its highest point since the 1970s and markets are polarized between the need to raise rates to curb price growth versus continuing to stimulate the economy to achieve and sustain full employment.
In the meantime, real estate fundamentals have accelerated beyond expectation, with 20% rent growth common in may ways U.S. apartment and industrial markets and cap rates at record low levels. Consequently, returns in 2021 are likely to be at the highest point since 2010. While Europe’s recovery has lagged and Asia’s has been more stop-start, real estate fundamentals have exhibited strength, and the weight of capital looking for durable income has kept yields low.
