This asset class is better than bonds at hedging a stock portfolio

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This asset class is better than bonds at hedging a stock portfolio
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But it still leaves much to be desired

Residential real estate is the ideal investment to protect your portfolio from a stock bear market—on paper.

In practice, however, it leaves much to be desired. That’s because it’s impossible for an individual investor to gain exposure to the asset class as a whole, and as the English proverb goes, “there’s many a slip twixt the cup and the lip” when attempting to approximate that exposure. There are a couple of exceptions. Unfortunately, they appear to be more correlated with the stock market than with the Case-Shiller index—and thus not very helpful as hedges against equity bear markets.

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