The People Have Spoken And They Want Real Assets
Many investors, particularly millennials, are increasingly losing confidence in the stock market due to a combination of factors such as recent bank failures, market volatility and recession fears. The traditional financial system has faced significant setbacks, with events like the collapse of Silicon Valley Bank shaking investor trust.
The once-promising cryptocurrency market has also seen notable declines, including the collapse of FTX and overall poor performance across the board.
These factors, coupled with mounting concerns of a recession, have led investors to seek more stable and tangible investment options. Many are turning to real assets like real estate for the passive income, long-term growth potential and stability.
Platforms like Arrived, which allow average investors to participate in the real estate market, have gained popularity as millennials shift their focus away from stocks and cryptocurrencies in search of more secure investments.
The real estate investment platform has witnessed a sharp increase in investments in its rental property offerings. Unlike publicly-traded REITs, investors on the Arrived platform buy shares of specific properties. This allows them to make their own decisions about the properties they invest in and become co-owners of real assets with an address. Investors can see photos of the properties and even drive by and look at them if they wish, providing a level of tangibility that stocks and cryptocurrency simply cannot offer.
To date, investors on the platform have fully funded 240 properties with a total value of more than $89 million. Last week, Arrived broke a new record by funding over $3 million in a single day. This impressive growth can be attributed to an increasing number of investors, particularly millennials, who have lost confidence in the stock market.
Arrived offers individual investors the opportunity to fund properties with a minimum investment of just $100. Once they own shares of a property, they are entitled to their share of the rental income and price appreciation. This democratization of real estate investing has opened the door for average investors to participate in a market that was once reserved for the wealthy or well-connected.
The shift toward real assets, as seen with the success of Arrived, is a clear indication of where investors' priorities lie in today's uncertain financial climate. Real estate investments offer a degree of stability, tangibility and long-term growth potential that is increasingly difficult to find in other asset classes.
While stocks will always have their place in a diverse investment portfolio, the growing interest in real assets signifies a return to more traditional investments in the face of an uncertain future. The success of Arrived, and the broader shift toward real estate investing, demonstrates the enduring appeal of tangible assets in times of economic turmoil.
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