√ The typical millennial profile (post-college graduation) has human capital as their only asset, but is also effectively short both bonds (student debt) and residential real estate (renters).
√ Given most millennials' desire to own a home, their largest risk exposure, pre-home-ownership, is the risk of inflation in residential real estate, which can far exceed conventional CPI.
√ Given this, we recommend a large portfolio exposure, indirectly leveraged if possible, to various components of the residential real estate sector, until the goal of home ownership is reached.
√ We offer a portfolio solution to implement our recommendation including specific sectors and stocks.
√ Along the way, we explore various other issues, such as setting your goals, repaying your student debt, and the best time to buy a home.
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