Darius McDermott: What will be the catalyst for real assets?

Real assets are providing increasingly important in the AI boom

clock • 4 min read

Real assets have faced a series of segmented idiosyncratic problems, writes Darius McDermott. But is there light at the end of the tunnel?

Real assets have had a tough run. Usually a source of inflation protection and stability, each segment has faced idiosyncratic problems. Infrastructure and property assets derive a lot of their value from the inflation-adjusted cash flows that they generate. These have become less valuable as the returns from cash and fixed income have risen. While the traditional characteristics of real assets are likely to reassert themselves over time, there is an additional factor that could drive returns for a number of real assets: artificial intelligence (AI). Real assets are providing in...

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