The single best investment you can make for 2017

It’s that time of the year again. The time for financial analysts — and market-watchers — to look forward and forecast what will happen in the coming year. For investors, one of the most important predictions is what will happen with the stock market. Here I share what the experts have to say. But I also ask you as an investor to think about “What are you going to do with this information?” and then I share my own thoughts on the subject.

In their just published 2017 US Equity Outlook Goldman, Sachs & Co. predicts by end of Q1'17 the Dow will hit 2400 (up 9%) on optimistic expectations for new pro-business legislation from the incoming administration. Then in 2H 2017 Goldman sees the Dow pulling back as inflation, reality, and fear set in — closing the year at 2300 just roughly 5% ahead of current levels. You can find a more detailed summary of the GS report here.

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How do you feel about that? What are your thoughts about stocks in 2017? How will it affect your investing right now? In 6 months?

How about bonds?

Where is the best place to invest in 2017?

10 years of Market-beating results.

Let’s compare OpenPath to afore-mentioned stock market. Again, GS’s prediction is for a 5% gain in stocks in 2017. Looking back, the S&P 500 has a 10-year annualized return of 7.20%. Over that same 10-year period, OpenPath has averaged a 33% IRR (internal rate of return). This pertains to the 8 properties we acquired and sold over this period. The average hold for these properties was 2.7 years and the average multiple on equity was 2.0X. More details on our approach to real estate and our financial performance is in our corporate overview. It should also be noted that real estate offers tax advantages that can enable you to defer taxes on your gains, which makes these numbers even more compelling compared to stocks and bonds.

What’s Next?

The Net-Net, when I look at the risk/reward for stocks and bonds in 2017, I don’t like what I see. For me OpenPath’s multi-family real estate and social impact model offer a much more interesting opportunity for strong returns.

If you’d like to learn more, I invite you to visit our site or send me a note at david@openpathinvestments.com.

A couple other posts that I think you will like:

My Next Google: A perspective from employee 75

The Impact of Trump & Higher Interest Rates on Real Estate Investing

Investing in Real Estate with a Self-Directed IRA

Positive Signs for Apartment Complex Investors

Note: OpenPath investment opportunities are for accredited investors. I am not a CPA or professional financial advisor. All opinions are my own. I encourage you to consult your accountant to fully understand your individual tax situation.

Written by

Investor, Partner, Advisor. First Google Advertising Exec (2000–07), ex-Chicagoan. Now at OpenPath Investments & FullCycle Climate Partners

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