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My Portfolio Strategy For 2022


  • As we go into 2022, most stocks and bonds are priced at bubbly valuations despite significant uncertainty.
  • Even then, most investors remain near fully invested in traditional stocks and bonds.
  • My portfolio is unique in that I invest more than 50% of it into alternatives/real assets. I explain why and present some of my top holdings.
  • Looking for a portfolio of ideas like this one? Members of High Yield Landlord get exclusive access to our model portfolio. Learn More »
Dollar bag, golden eggs on summary reports

William_Potter/iStock via Getty Images

Despite recent concerns of rising interest rates, the reality is that we remain in an ultra-low yield world, and even after several potential hikes in 2023, the real interest rates will still remain negative.

Inflation is running at 6.8%, but the

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This article was written by

Jussi Askola profile picture

Jussi Askola is the President of Leonberg Capital, a value-oriented investment boutique that consults hedge funds, family offices, and private equity firms on REIT investing. He has authored award-winning academic papers on REIT investing, has passed all three CFA exams, and has built relationships with many top REIT executives.

He is the leader of the investing group High Yield Landlord, where he shares his real-money REIT portfolio and transactions in real-time. Features of the group include: three portfolios (core, retirement, international), buy/sell alerts, and a chat room with direct access to Jussi and his team of analysts to ask questions. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NNN; NWHUF; EPR; TSM1T; FARMTOGETHER either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (74)

A lot of interest on the impact of future interest rates.

For the upcoming cycle, higher rates are accompanied by higher GDP. In addition, a lot of REITs have already refinanced debt to historically low levels as their NOI approaches pre-pandemic levels. Combined with increases in underlying book value, I think high quality eREITs should survive this cycle although it might be more lumpy than stocks.

I remain overweight but haven't added in a while, preferring to allocate to alternative asset managers instead.

Jussi Askola profile picture
@user1416 Note that REITs have historically outperformed during times of rising rates.
You mention MAA as one of your holdings. It appears that MAA is trading at a FFO multiple of nearly 33, which is more than double its 14.7 historical FFO multiple. Wouldn't this company be one to sell now and then reinvest the proceeds in something that is in fact more reasonably priced now, such as GPN or CMCSA? Please help me understand why an investor would hold a stock that is so overvalued?
Jussi Askola profile picture
@Trying to Learn I do not. MAA is only used as an example here. I do not own it. There are better options in its peer group. Feel free to join us for a 2-week free trial to access all our Top Picks: seekingalpha.com/...
Very nice returns! Happy New Years!
RiskStrategies profile picture
Hello Jussi - Thanks for the article looking forward into the near beyond. BAM is worth considering it seems. Your stuff is clear and to the point as always. All the best for 2022.
Jussi Askola profile picture
Thank you for reading!

We are currently sharing all our Top Picks for 2022 with members of High Yield Landlord. You can read about one of them for free here: seekingalpha.com/...

If I can help with anything, let me know.

jerseyvalueinvestor profile picture
Be careful. I had the same idea before the 2008 crash when inflation was spiking and oil hit $140 a barrel or some insane number, rates will be rising soon which will pop the bubbles and likely take most asset classes down, i would accumulate said "real" assets during that time period say 2nd half of 22 to 23/24.
Jussi Askola profile picture
@jerseyvalueinvestor Just FYI: REITs have historically outperformed during times of rising interest rates. On average, they have returned 17.4% total returns in the 12 months following rate hikes. It is a common misconception that they underperform.

Also, the world is today very different from what it was leading to the great financial crisis.
jerseyvalueinvestor profile picture
@Jussi Askola its always "different this time" you will see in time. real estate definitely doesn't like higher rates......
Jussi Askola profile picture
@jerseyvalueinvestor Again, you are wrong. REITs outperform during times of rising rates. The proof is here: seekingalpha.com/...
Jussi, on what exchange are you purchasing / trading TSM1T? My trading platform is with TD Ameritrade. The related symbol I found for this company is TSMTF which shows a last bid of $2.11 a share?
Jussi Askola profile picture
@oeverts I bought it on the Nasdaq in Tallinn with Interactive Brokers.
@Jussi Askola at what cost?
stoney500 profile picture
Jussi - why do websites like Financial Samurai tout Fundrise? It seems pretty clearly to be an inferior investment praying on the uninformed/lazy investor
Jussi Askola profile picture
@stoney500 I think that in most cases REITs are superior investments, but there is still a place and a need for crowdfunding platforms. As an example, maybe someday REITs will become overpriced and at that time, it will be good to have alternatives.

Also, some property sectors have very few REITs. As an example, there are only 2 farmland REITs and if those aren't attractive, then crowdfunding platforms like FarmTogether fill an important void.
So How do you invest in Tallinna Sadam?
Jussi Askola profile picture
@1gdanka You would need to access the Nasdaq in Tallinn. I have no problem with Interactive Brokers.
My 2022 strategy is 🙏
stoney500 profile picture
Really like your article, and picks. I will wait to see what happens for a month or two. I might jump into TSM1T in two weeks. Thanks
Jussi Askola profile picture
@grharbart201 I appreciate your interest and kind words.

Happy new year!
The move to things like collectibles and NFTs is the SURE sign of an economic top. I agree with the author on some REITS, Farmland, and energy sources, but they are all overpriced also. 2022 may be the year to just suck it up and stay in cash/short-term debt/best large caps. Return ON capital will be less important than return OF capital.
Jussi Askola profile picture
@Ivote I think that most real assets still offer great value when you consider that we are in an ultra-low interest rate world with high inflation. Relative to most other assets, they are bargains.
Paul Wagner profile picture
RE: EPR: SA shows current yield at 3.16%. seekingalpha.com/...
Jussi Askola profile picture
@Paul Wagner That is not correct. The monthly dividend is $0.25 per share. The yield is over 6%. Make your own calculations. SA's data is not always correct.
@Paul Wagner My Fidelity account is telling me 6.32% at the moment.
garkster profile picture
@Paul Wagner SA clearly indicates that 3.16% is TTM. SA also shows 6.32% as the forward yield. The history shows that the dividend was suspended from May 2020 through June 2021.
Bitcoin is the most important asset that investors need to add to their portfolios in 2022.
Jussi Askola profile picture

I have nothing against Bitcoin, but I view it as speculation, and certainly not as an essential asset in a portfolio.

To each their own.

Happy New Year!

Nadalovic profile picture
When the music stops REITs are very much part of the stock market and will drop like everything else. Capital will dry up, refinances will be more expensive, and weaker tenants wont be able to pay the higher rents needed to keep up with the miserable environment. But you can't time it.
@Nadalavic Happy New Year! 🎉
Jussi Askola profile picture
@Nadalavic The nice thing is that historically, REITs have provided nearly 2x better downside protection than regular stocks during recessions. The great financial crisis and pandemic were of course exceptions as they affected real estate a lot more than other sectors. Today, since real interest rates remain negative, inflation is running high, and REIT valuations remain reasonable, I think that REITs continue to offer much better risk-to-reward than the broader stock market.
Reidar Herreid profile picture
@Jussi Askola If one stock goes up to ten x during an up stock market and another goes up 3 x and one draws down 50 percent and the other draws down 25 percent I still want the stock that went up ten x.
Happy New Year to you, your team, and your friends and family!
Jussi Askola profile picture
@Gyponolan Happy New Year! Thank you for your support
RonEDickinson profile picture
I like a lot of your viewpoints. I have my portfolio 60% stocks (including infrastructure assets - BIP,BAM) and 40% real estate. Always looking for more income ideas. I see your two week free, what is the cost of your news service after that? Good advice is worth paying for, but I’m just looking for transparency.
Jussi Askola profile picture
@RonEDickinson Thank you for your interest! You can find all the details on this page: seekingalpha.com/...

The discounted annual rate is $399. You won't get charged anything during the free trial so feel free to give it a try.

Happy New Year!
Never Sell Investing profile picture
How do you buy an Estonian firm?
Jussi Askola profile picture
@Never Sell Investing It is publicly listed on the Nasdaq in Estonia. You can buy it with Interactive Brokers. We discuss how in our Course to REIT Investing. Feel free to join us for a 2-week free trial: seekingalpha.com/...
Income4ever aka Cyclenut profile picture
Good morning and happy new years
Agree on EPR.. added recently as well.
On another note ... another SA RE contributor very recently floated some speculation that O might be lining up another huge acquisition in Europe.
Jussi Askola profile picture
@Income4ever aka Cyclenut Happy New Year! O is making big moves in Europe. It has clearly indicated that it will make big acquisitions there.
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