Morgan Stanley: Prices for Rolex, Patek Philippe and Audemars Piguet watches will keep plunging due to a flood of supply — but these 3 real assets remain scarce and coveted

Real estate

Real estate has been a popular asset class as of late — perhaps because it’s a well-known hedge against inflation.

As the price of raw materials and labor goes up, new properties are more expensive to build. And that drives up the price of existing real estate.

Well-chosen properties can provide more than just price appreciation. Investors also get to earn a steady stream of rental income.

Of course, while we all like the idea of collecting passive income, being a landlord does come with its hassles, like fixing leaky faucets and dealing with difficult tenants

But you don’t need to be a landlord to start investing in real estate. There are plenty of real estate investment trusts (REITs) as well as crowdfunding platforms that can get you started on becoming a real estate mogul.

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

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Wine

People have been consuming wine for thousands of years. While most collect wine for enjoyment rather than investment, bottles of fine wine become rarer and potentially more valuable as time goes by.

Since 2005, Sotheby’s Fine Wine Index has gone up 316%.

As a real asset, fine wine can also provide the diversification you need to protect your portfolio against the volatile effects of inflation and recession.

You can invest in wine by purchasing individual bottles — but you’ll need a place to store them properly. Residential wine cellars often cost tens of thousands of dollars. If not stored at the right temperature or humidity, the bottle could be compromised.

That’s one of the reasons why investing in fine wine used to be an option only for the ultra-rich. But with a new investing platform, you can invest in investment-grade wine too, just like Bill Koch and LeBron James.

Farmland

The wealthy elites have amassed farmland since the beginning of recorded history.

Today, Bill Gates — the fifth richest person in the world, with a net worth of $107 billion according to Bloomberg — is the largest private farmland owner in the U.S.

You don’t need an MBA to see the appeal: Farmland is intrinsically valuable and has little correlation with the ups and downs of the stock market. And even in a recession, people still need to eat.

Between 1992 and 2020, U.S. farmland returned an average of 11% per year. Over the same time frame, the S&P 500 returned only 8% annually.

Investing in farmland is also becoming more accessible these days, even if you know nothing about farming.