tailieunhanh - A Study of Real Real Returns

Another investment vehicle under development is the Mexican version of a REIT, the Fideicomisos de Infraestructura y Bienes Raices (FIBRA). Under Mexican law, the purpose of a FIBRA must be to acquire or construct real property. Property owned by the FIBRA must be leased for a minimum of four years before the FIBRA may sell it. First allowed under Mexican law in 1994, FIBRAs have not taken hold in Mexico. Efforts to create them have stalled primarily due to taxation concerns and because much of the private land owned in Mexico is still controlled by individuals or families. Recent changes. | Thornburg Volume 19 August 2012 Investors worldwide continue to grapple with the lingering effects of the deepest economic downturn since the Great Depression. The . unemployment rate remains stubbornly high China is attempting to avoid a hard economic landing and Europe is trying to manage its way through a sovereign debt crisis. In an effort to stimulate growth and avoid a Japanese-style decades-long economic malaise the . Federal Reserve has indicated a willingness to keep a highly accommodative monetary policy in place through at least 2014 by keeping short-term interest rates near zero. Some are beginning to question the long-term effects of this approach as inflation often follows loose monetary policies and once the inflation genie is out of the bottle it can be difficult to contain. In 2011 Kansas City Federal Reserve Bank President Thomas Hoenig since retired warned that extended periods of accommodative policies are almost always followed by some combination of ballooning asset prices and increasing inflation. In early 2012 current St. Louis Federal Reserve President James Bullard was quoted in a speech as saying that it may be especially difficult to remove policy accommodation at the appropriate pace and at the appropriate time. Inflation is not currently a frontburner issue for most investors. However over the long term inflation and taxes have been the investor s two primary obstacles to building long-term wealth. Explicit tax rates are currently the subject of much debate however inflation is often referred to as a silent tax as it has been used by governments for centuries to relieve themselves of high debt burdens by printing new dollars that are worth less than the dollars they borrowed. It s important for investors to look beyond nominal returns to what an investment returns after inflation taxes and expenses the Real Real Return. Investment Management Strategies for Building Real Wealth A Study of Real Real .