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Collapsing correlations boost real assets appeal
['Brought To You', 'Vince Childers']
Investment Executive
**A collapse in correlations to broad equities has made real assets more attractive from a portfolio construction perspective, says Vince Childers, senior vice-president and head of real assets multi-strategy with Cohen & Steers.
“Real assets are doing things that are very different, responding to different drivers in the market and the economy.”
Among what he calls the “core four” real assets — real estate, resource equities, commodities and listed infrastructure — he currently favours resource equities and listed infrastructure.
He said there are a couple of risks to the real assets thesis that he’s watching for.
The other flag would be an acceleration of AI-focused gains that leaves real assets lagging by comparison.