What’s good, folks?
Welcome back to the newsletter.
I have been watching the US–Iran conflict closely and tracking it across all my recent portfolio updates. In my view, this crisis carries severe undercurrents that could easily derail our domestic economy and financial markets. Given the scale of these structural shifts, I believe it is time to pivot to a defensive stance rather than an offensive one when it comes to portfolio construction in India.
"I firmly believe this war is far from over. Trump is simply buying time ahead of the midterm elections, and the Strait of Hormuz remains effectively closed. Whatever oil prices we are currently seeing in the financial markets are completely detached from real-world realities; for instance, India paid an average of $105- 110 per barrel to import crude over the last two months alone."
For some reason i have been finding REITs and INVITs more logical way to play this market than going all in aggressively into equities. Although i think many business are trading cheap and could potentially give superior returns than REITs and INVITs.
I wish i know the reason but that’s what my intuition has been telling me and i feel more comfortable this way.
Real estate and telecom infrastructure trusts (REITs and InvITs) are the ultimate sleep-well-at-night assets. They act as digital and physical toll booths. They don’t care who wins the AI race or which brand is getting more popular; they simply collect rents and lease payments, indexed to inflation, and distribute them to unitholders.
Over the long run, I expect that if you consistently reinvest the DPU (Distribution Per Unit) back into REITs and InvITs, you can reasonably target an 11% to 15% CAGR return from these assets.