@lifegoalinvestments: This asset class outperforms that S&P 500 with ZERO negative years over the past 30 years?!?! Yes, those are the true stats of FARMLAND. Going forward, the supply/demand dynamics of farmland continue to improve. As global population increases, which is one of the most predictable things on earth, DEMAND for food INCREASES, and the SUPPLY of farmland DECREASES as cities get bigger. Stats on Global Population- the UN projects that the population will continue to increase, reaching 9.2 billion by 2040, 9.8 billion by 2050, and 11.2 billion by 2100. THE ONE DOWNSIDE: farmland is not a great investment to make inside of an ETF or traditional mutual fund. WHY? Because it’s not a liquid asset like stocks or bonds. EX. If there was a FARMLAND ETF with 2,000 shareholders, and the manager used their money to go out and buy 100,000 acres, then the next day half the shareholders sold the ETF (because ETFs are daily liquid), the manager would be put in a forced sale situation trying to quickly liquidate 50,000 acres of farmland. Farmland is not Apple stock, it’s not liquid- therefore it should not be held in a daily liquid product like an ETF or traditional mutual fund. As always, you want to match the liquidity profile of the investment vehicle with the liquidity profile of the underlying investment. Click the link in my bio if you’d like to intelligently build FARMLAND into you portfolio. Disclosure: obviously, past performance is not indicative of future returns. #stocks #investments #investor #investing #intelligentinvesting #realestate #realestateinvestor #realestateinvesting #farmland #finance #personalfinance #cfp #portfoliomanagement #bonds #lifegoalnation #lifegoalinvestments

Taylor Sohns

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Region: US

Wednesday 29 May 2024 13:52:06 GMT