Is Farmland As Good As Gold?
Author(s) -
Marvin J. Painter
Publication year - 2011
Publication title -
economics research international
Language(s) - English
Resource type - Journals
eISSN - 2090-2123
pISSN - 2090-2131
DOI - 10.1155/2011/924708
Subject(s) - real estate investment trust , bond , portfolio , investment (military) , real estate , business , gold as an investment , asset (computer security) , monetary economics , gold standard (test) , economics , financial economics , finance , financial system , medicine , computer security , politics , political science , computer science , law
An analysis of Canadian farmland risk and its return on investment shows that a Farmland Real Estate Investment Trust (F-REIT) and gold would have significantly enhanced portfolio performance over the past 35 years. Investors who desire low-risk portfolios would not have benefited from an F-REIT or gold investment. However, investors in the medium-risk category could have improved the financial performance of their portfolios by including an F-REIT investment rather than gold. The financial gains from F-REIT result from a level of risk that is lower than gold, REITs, and stocks, an expected yield that is greater than for bonds, and a low correlation with other financial asset returns
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