Heightened Market Demand for Agricultural Investments
Extreme monetary policy across much of the developed world has distorted many asset classes. The stretched valuations of most stocks and bonds have propelled a shift into alternative assets as institutional investors search for yields in a world where the return is scarce. Concurrently, many investors are looking for ways to insulate their portfolios from the certain increased levels of inflation. Accordingly, agriculture assets have attracted greater investor demand as institutions seek to diversify their portfolios from what can best be described as a nervous and toppy market. While agriculture isn’t necessarily insulated from a scenario in which both the bond and stock markets are falling, interest in the sector remains strong due to some key attributes which this sector provides investors, including strong long-term fundamentals, attractive returns, and capital preservation. According to Jose Minaya, President of the new $100bn real assets division of TIAA Global Asset Management,...