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“ARUBA Real Estate", Stock Model Portfolio: Five-years Old on February 28, 2021.

“ARUBA Real Estate", Stock Model Portfolio: Five-years Old on February 28, 2021.

| March 04, 2021

The name was inspired by a boring business meeting in Aruba, not by investing there. The thought was that instead of buying into REITs, real estate crowdfunding or owning property by itself, we could own real estate through stocks. These companies may provide services to properties, own the properties, or even be brokerage companies or other data-related services companies in the REAL ESTATE sector.

The S&P 500 officially launched their Real Estate Select Sector on August 17, 2015. Bearing Financial Advisors, LLC took it a step further by identifying criteria for investing in real estate companies that demonstrated outperformance over a significant period of time.

We made a conscious decision to search across a wider swath of real estate market contenders. Our model is an equal-weighted selection of companies that represent a broad collection of services in this exciting and broad sector of the stock market. Risk-management is a key differentiator in the way these stocks are included in the portfolio.

The Covid-19 threat spared no prisoners at its onset. Stocks in almost every sector fell dramatically at the end of the first quarter of 2020. Our “ARUBA” model ricocheted off its bottom in July (2020) and has sustained a remarkable trajectory almost without interruption.

Virtues of ownership: You don’t have to apply for a loan to buy real estate; No bidding against competing buyers; unfettered liquidity in that you can close the account and take the proceeds in mere days (not months); recognition of certain name brands and marketability; Clear and identifiable values established at the end of every trading session; Active management to keep the stronger performers and replace the weak….