(Benzinga) - Millionaire investor and CNBC “Mad Money” talk show host Jim Cramer is veering away from speculative assets. This is not surprising, as the Federal Reserve’s hawkish stance has sent shockwaves across markets, with equities retreating from their July highs last month.
During his speech at the Jackson Hole economic summit, Federal Reserve Chairman Jerome Powell stated that the Fed is committed to raising interest rates to quash inflation woes even though they will cause “some pain” to American businesses and households. Following this, Cramer said on his show that it is high time investors “stop doing stupid things with [their] money.”
Crypto Winter To Continue
Cramer, once a crypto advocate, recently admitted that he no longer considers Bitcoin to be a store of value. This is because the rising interest rate backdrop is expected to hurt speculative assets the most.
He also acknowledges that some good investments might witness a temporary pullback because of the volatile market backdrop. As a result, popular decentralized tokens — including Bitcoin and Ethereum — are bound to fall in value in the near term.
Regarding this, Cramer said, “This is what it looks like when the Fed gets serious. ... What matters is that we just have to get through it intact. Don’t get memed. Don’t get SPAC’d. Don’t get crypto’d. And you’ll get through this thicket and find yourself in a much better time when we are sufficiently oversold for a huge bounce.”
Real Estate For The Win
While Cramer is steering clear of risky speculative instruments, he is of the view that real estate investments can reap substantial return on investment. The current U.S. housing crisis has resulted in skyrocketing rents across major cities.
While investing in physical properties might not be financially feasible, residential apartment real estate investment trusts (REITs) might be one of the best investment avenues at the moment. This is because REITs are required to distribute 90% of their taxable earnings to investors.
“With rents skyrocketing all across America, and with an uncertain housing crisis because of mortgage rates, you might want to own one of the best apartment REITs,” Cramer said about four promising residential REITs in April.
Today’s Real Estate Investing News Highlights
The CalTier Multi-Family Portfolio Fund recently completed a new investment in a portfolio of four multi-family properties consisting of 185 units. The CalTier Multi-Family Portfolio Fund is one of the few non-traded real estate funds available to non-accredited investors and has a minimum investment of $500. Year to date, the fund has produced an annualized cash-on-cash return of 7.02%.
The Bezos-backed real estate investment platform Arrived Homes launched a new batch of offerings to allow retail investors to purchase shares of single-family rental homes with a minimum investment of $100. The platform has already funded over 150 properties with a total value of over $50 million.