Industry polls, surveys and discussions with limited partners (LPs) show confidence toward Europe is becoming more favorable. Setting aside geopolitics, investors can now determine a sound basis for asset pricing, the fear of catching a falling knife has receded, and the volatility in liquid markets has shifted the focus on private assets — including real assets and property.
REIT valuations have shown signs of stability, which is a helpful leading indicator for behavior and direction in private market valuation trends. All of this provides confidence we reached an inflection point where we appear to be entering a recovery cycle. The only remaining questions are how quickly the recovery will take hold, which sectors will be favored and how to navigate the increasingly complex geopolitical environment when making portfolio construction decisions.
During this correction, investors navigated the impact of COVID-19 on growth, inflation, elevated borrowing rates, rapid te
