Trifecta Of Headwinds Rules Investing Landscape

So much for Wall Street’s Santa Claus Rally ushering in the January Effect. It didn’t take a New York minute for the stock market to take its que from the bond market, when Treasury prices dove so did the market’s institutional equity darlings. Several media outlets wrote up the new narrative over the past weekend, outlining what investors hadn’t factored in – a revised Fed fiscal policy that would see QE end by March, a series of quarter-point Fed Funds rate hikes may ensue thereafter with a pulled forward runoff of the Fed’s $9 trillion balance sheet beginning in July.

This seems like a semi-shocking adjustment to what had been the broad acceptance of a gradual tightening process that the market had fully bought into with Fed Chair Jerome Powell’s post-December FOMC meeting press conference. Evidently, the latest employment data put an end to any notion that wage inflation wasn’t a major concern in the overall inflation picture. Hourly wages for December were up 0.6% and up 9.9% for the year. The shrinking skilled workforce is fueling a higher and persistent set of costs for employers at all levels.

Rising bond yields have the biggest growth stocks in a tizzy – with the mega-cap tech powerhouse names getting shellacked and the Cinderella cloud kings getting repriced from trading at sky-high 50-100 times price-to-sales ratios to more reasonable valuations, given P/E ratios are hard to come by. It looks like a textbook market reset that is tossing our expensive growth and ushering in value and dividend growth in a monumental rotation. And it should be a welcome change as it better reflects an economy that is more grounded on growth without Fed QE.

Within this construct the case for real estate stocks may continue to foster credibility as a class of stocks that, in our opinion, will most likely outperform in a market landscape that wants to reward inflation-sensitive assets, dividend payouts and hard assets. Forget the “For Sale” signs, transaction fees and commissions on buying and selling brick and mortar homes. Instead consider that buying and selling real estate on the stock market may be, for some, an excellent avenue at owning a slice of a diversified real estate portfolio with certain tax benefits.

Even better – when that diversified portfolio delivers income and growth in Class A multi-family residential apartment communities within some of the strongest job markets where there often exists a shortage of high-quality housing.

Belpointe PREP (NYSE American: OZ) is sharply focused on acquiring and building Class A full-featured apartment complexes in some of the most robust job markets all while in the midst of an ongoing capital raise. Our target markets in the early going are Sarasota and Tampa/St. Pete, FL, Nashville, TN, Austin, TX, Boise, ID, and the Research Triangle (Durham, Chapel Hill and Raleigh, NC).

Belpointe PREP has an active blueprint for deploying its acquisition and construction team to exploit these markets and will strive to begin the process of establishing a distribution schedule in the future. In addition to developing properties, Belpointe PREP will also focus on acquiring existing qualified opportunity zone funds, with existing cash flow, whose management may be looking to exit their investments. This course of action removes new construction risks and affords the possibility of immediate income for Belpointe PREP investors.

Investors with 2021 capital gains that want to learn more about how they may still be able to defer or possibly eliminate those capital gains before their tax bill comes due should pick up the phone and call me about all the features of Belpointe PREP and what buying into OZ has to offer. April 15th will be here in no time and with it the need to offset tax bills at prevailing tax rates, which may be adjusted higher over the course of 2022. If a re-worked version of Biden’s Build Back Better Plan goes through, I would expect that the demand for a tax shelter like Belpointe PREP (NYSE American: OZ) would be very high, especially if any new legislation were to be given retroactive effect as of January 1 of this year.

Belpointe PREP (NYSE American: OZ) is designed for investors who have capital gains from the sale of stocks, bonds, real estate, a business, collectibles, cryptocurrencies, trademarks, patents, precious metals, planes, boats, livestock, or any other intangible or tangible assets

Have questions about how Belpointe OZ can provide opportunities for investment appreciation, income and help you or your clients to Defer or Eliminate Capital Gains Obligations?

Call or email us and we’ll take the time to answer all of your questions about Belpointe OZ and how reinvesting capital gains in a Qualified Opportunity Zone fund can be utilized to offset an investor’s tax obligation.

You can contact us at 203-883-1944 or IR@belpointeoz.com

Cody Laidlaw
Editor-in-Chief
Belpointe OZ
255 Glenville Road
Greenwich, CT 06831
T: (203) 883-1944
E: IR@belpointeoz.com

Disclosure: Cody H. Laidlaw is the Chief Investor Relations Officer of Belpointe PREP, LLC. Cody is also an investment advisor representative with Seaside Advisory Services, Inc. (d/b/a Seaside Financial & Insurance Services), a SEC registered investment adviser offering advisory accounts and services, and holds a long position in Belpointe PREP, LLC’s Class A units.

Important Information and Qualifications

Belpointe PREP, LLC (“Belpointe PREP”) has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the offer and sale of up to $750,000,000 of Class A units representing limited liability interests in Belpointe PREP. You should read Belpointe PREP’s most recent prospectus and the other documents that it has filed with the SEC for more complete information about Belpointe PREP and the offering

Investing in Belpointe PREP’s Class A units involves a high degree of risk, including a complete loss of investment. Prior to making an investment decision, you should carefully consider Belpointe PREP’s investment objectives and strategy, risk factors, fees and expenses and any tax consequences that may results from an investment in Belpointe PREP’s Class A units. To view Belpointe PREP’s most recent prospectus containing this and other important information visit sec.gov or belpointeoz.com. Alternatively, you may request Belpointe PREP send you the prospectus by calling (203) 883-1944 or emailing claidlaw@belpointe.com. Read the prospectus in its entirety before making an investment decision.

This communication, including any links embedded herein, may not be distributed in any jurisdiction where it is unlawful to do so. Nothing in this communication is or should be construed as an offer to sell or solicitation of an offer to buy Belpointe PREP’s Class A units in any jurisdiction where it is unlawful to do so.

Neither Belpointe PREP nor any of its affiliates provide investment or tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should consult their own investment and tax advisers concerning the U.S. federal, state and local income tax consequences, as well as any tax consequences under the laws of any other taxing jurisdiction, in relation to their personal tax circumstances, which may vary for prospective investors in different tax situations.

This communication may contain estimates, projections and other forward-looking statements, typically identified by words and phrases such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” or the negative of such words and other comparable terminology. However, the absence of these words does not mean that a statement is not forward-looking. Any forward-looking statements expressing an expectation or belief as to future events is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future events and involve risks, uncertainties and other factors beyond Belpointe PREP’s control. Therefore, we caution you against relying on any of these forward-looking statements. Actual outcomes and results may differ materially from what is expressed in any forward-looking statement. Except as required by applicable law, including federal securities laws, Belpointe PREP does not intend to update any of the forward-looking statements to conform them to actual results or revised expectations.

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