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With the emergence of "new and improved" non-traded REITs (NTRs), some investors have shrugged off the industry's checkered past, seeing NTRs as a less volatile alternative to listed REITs. However, investors may not realize they are paying higher fees for lower return potential, along with less liquidity, less diversification, and less pricing transparency. Here is a look at some of the lesser-known aspects of NTRs and how they stack up against listed REITs.

Despite ongoing discussions meant to defuse tensions and a 90-day “truce” between U.S. and China, the trade tariff issue has not gone away. Well-entrenched globalization trends are unlikely to be reversed, but protectionism could weigh on growth. Other global and non-U.S. economic overview includes share declines in oil and other commodities combined with tightening global financial conditions may pressure emerging markets.

The roller coaster ride for midstream energy investors was particularly stomach churning in 2018, with the Alerian Midstream Energy Index ending the year down 18%, putting it 45% below its 2014 high. Even though oil prices have been pummeled, many master limited partnerships and other midstream businesses have exceeded cash flow expectations thanks to strong pipeline supply/demand fundamentals. To help investors make sense of what’s going on, five key questions are answered.

Despite the challenging finish to 2018, this year could be better for REITs. Taking a top down view, there are three themes to look at with respect to how they will play out for real estate. First, the deceleration of economic growth. Second, the healthy employment and wage growth. Third, the change in interest rates being dependent on how healthy the U.S. economy is and where inflation ends up being. It's reasonable to expect that REITs can deliver both an absolute and relative return profile that's attractive to investors.

Allocations to listed infrastructure have been on the rise in recent years amid growing demand for real assets offering relatively predictable cash flows and the potential for attractive real returns. A case for this asset class is made through an examination of its historical investment characteristics and the secular themes driving significant capital formation in infrastructure globally.

Preferred securities play a unique role in capital markets and have unique investment attributes. They are fixed-income investments, but with certain equity characteristics such as deeper subordination in the capital structure. Investors are compensated with notably high rates of income. Despite preferreds’ long stated lives, abundant fixed-to-floating-rate preferred instruments can significantly diminish interest-rate risk in diversified portfolios. Since many preferred pay legal dividends, preferreds can also offer significant tax advantages.

One of the familiar adages to describe the price action in the stock market is “it takes the stairs up and the elevator down.” The dramatic decline in stock prices since mid-September 2018 certainly fits this pattern. Investment sentiment has turned decidedly negative: the American Association of Individual Investors’ latest reading showing bullish sentiment at just 20.9%, a 17-percentage point drop since the last reading. Is this a typical market “correction” or the start of something much more serious?

When it comes to the family, dynamics are changing. There is no longer one dominant family form in the U.S., according to Pew research. Parents are waiting longer to have children, and many millennials are living at home or taking a less direct route to adulthood. These shifts will continue in 2019 and shape how affluent families tackle interpersonal issues. As wealthy families move forward, there are three trends they should keep a close eye on and discuss with their family office or other advisors.

As higher interest rates, trade disputes, and slowing global growth cast a chill over markets, the US economy is completing a shift from a period of extended growth to the late stage of an economic cycle. While we do not know when exactly winter will arrive for the economy and markets, we are advising investors to brace for harsher climes. At the same time, we also encourage them to take advantage of an unseasonable mild stretch.

While the Treasury curve has continued to exhibit a flattening trend, taking it closer to an inversion, the municipal curve has marched to a different beat, even steepening slightly in 2018. The difference is apparent, especially when using a tax adjusted municipal curve to get a taxable equivalent. In fact, the relative slope between Treasuries and municipal debt is hovering around a record high, leading us to believe that municipal bonds are an attractive option for taxable investors relative to other fixed-income opportunities.