By Adedapo Adesanya

The real estate portfolio delivered the best return for investors in US stocks and investment platform, Risevest, in 2022, with a return on investment (ROI) of 15.6%.

In its Investing wrapped up: a look at our investment journey in 2022 bulletin, seen by trade publicationThe company said that investment for the year was actively affected by inflation and its measures to fight it.

The company, despite the difficult year, paid out $23.2 million to users while 109,800 plans were created while its investment club membership grew to 15,100.

“All the monetary easing that central banks around the world did in response to COVID led to the worst inflation numbers in over 40 years. US inflation peaked at 9.1%, and aggressive interest rate hikes by the US Federal Reserve and other major central banks led to the global rise in the cost of capital ”, he explained.

It added that although inflation in the world’s largest economy fell when rate increases reached 5 percent, rising rates and the higher cost of capital led to a massive drop in valuations of stocks and other assets, leading to some of the worst stock market crashes. in recent history.

This was on top of the wheat and energy crisis caused by the Russian invasion of Ukraine, as well as the collapse of the crypto industry.

The company revealed that real estate markets remained strong for most of the year up to the last quarter, generating double-digit returns for Rise’s portfolio.

In addition, energy commodities rose in the year of review, with energy stocks like ExxonMobil defiing the downturn and gaining 70 percent, adding that “all of that was overshadowed by what has been the seventh-worst performance of the markets.” stocks in history. ”

After the housing market, fixed income returned 10% on the year, providing much-needed returns to users and offsetting losses from stocks that fell 22% on the year.

Speaking about the moves it made, the company, in the newsletter, revealed that it introduced Airbnb into its portfolio based on its seasonal advantage and consumer-driven demand.

“For real estate, we introduced Airbnb rentals to our portfolio. While much more convenient than our traditional rentals, your earnings, even after expenses, are much higher, so it’s well worth the experience.

“However, we will continue to invest in Airbnb rentals as a smaller component of our real estate strategy due to its seasonality and the risk of changes in consumer behavior,” parts of the article read.

As for stocks, the company said it has exited companies without significant growth or cash flow generation capabilities and will prioritize defensive companies with strong demand profiles and solid balance sheets going forward.

“We’re holding on to a few tech companies like Facebook (Meta) and Google, which still hold a lot of value despite deep sentiment against them, and adding new positions on short- and long-term bets that will pay off when stocks rise.” recover”.

For the fixed income portfolio, the overall fixed income market delivered relatively stable returns, with the Bloomberg Barclays US Aggregate Bond Index returning 4.26% and our portfolio returning 10%. during the year.

“Our portfolio is well represented in consumer credit (provided by third parties) and mortgage-backed fixed income assets and a shrinking position in emerging market sovereign debt. Despite a difficult market position, credit and debt profiles remain relatively stable.

“Also, with higher interest rates, it’s increasingly possible to move up the risk ladder into even safer fixed-income assets without sacrificing returns, which is great news,” he said.

Laying out his outlook for the year, he said that in the face of a possible recession, weakened demand and a tight global supply chain, he expects a tougher first half and advised more people to “keep your budgets tight, emergency funds funded and his investing disciplined plans.”

As for the product, Risevest said that “multi-year asset class plans are on the way, as well as various types of accounts. Multi-country support and a host of new features, including dark mode, potential localized deals, and more customization, are also expected to support our users’ financial journeys and unlock more wealth-building opportunities for all Risers.”