Unconventional central bank monetary policy continues to drive asset prices. Although interest rates have ticked up slightly in recent months, the Federal Reserve continues to downplay the threat of an aggressive tightening of policy. We are still enjoying exceptionally low rates by historical standards, and while these may move slightly above record-low levels, there appears little immediate danger of a rapid rise in rates. Despite this, expected returns are poor for many low-risk liquid asset classes which produce a negative or negligible return in real terms. Against this backdrop, global real estate continues to look attractive relative to other asset classes.
Source : UBS AG