American IRA Discusses Self-Directed IRA Owners Could Benefit from Japanese Pension Fund Shift

ASHEVILLE, N.C., Nov. 23, 2018 /PRNewswire-PRWeb/ -- According to a new report from JP Morgan, pension funds in Japan are now allocating a large amount—over 17%--to alternative investment classes. This is up from 11% as of only five years ago—and many of the pension funds listed intend to expand exposure to alternative investment classes. Self-Directed IRA owners—many of whom own investments in alternative investment classes—might recognize the shift in strategy, as it suggests many in Japan are growing worrisome about the state of the stock market and of bonds.

But what is driving the shift in Japan? In Japan, the government policy pushing the money towards inflation has made government bonds a poor investment, which means that those looking to hedge against the stock market have to look for other options to gain value in the long-term. With the low yield on bonds, investors who are worried about a crash then have to turn to alternative assets like real estate to protect their money. The same strategy plays out in the United States with those Self-Directed IRA investors who do not place a lot of confidence in stocks or bonds and move instead to investments like real estate or precious metals.

These are not the only two alternative asset classes, as the post notes. Other investment classes include tax liens, private equity, REITs, venture capital, hard money lending, oil and gas, land banking, private lending, and hedge funds. And while the 17% of allocation to alternative investment classes is a large amount by U.S. standards, there is no sign that it will shrink over time, especially given the state of Japan's bond markets.

"What we are seeing in Japan is a sentiment you can find throughout the world," said Jim Hitt, CEO of American IRA. "People want certainty. Investors want certainty. And sometimes, when the stock market cannot do that, and bonds cannot do that, it means that investors have to turn elsewhere in their portfolio. Here in the states, that is what a Self-Directed IRA can do."

For more information, visit the post at http://www.AmericanIRA.com or call 866-7500-IRA.

"About:
American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC."

SOURCE American IRA, LLC

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