August 19, 2026: Real Assets, Real Opportunity

With elevated stock valuations and uncertainty around inflation, interest rates, and geopolitics, investors may be looking for diversification and return opportunities beyond traditional asset classes. In this environment, real assets, particularly private real estate and infrastructure, may offer compelling portfolio benefits.

Infrastructure spending needs remain significant, with an estimated $3.7 trillion funding gap in the U.S. by 2033.1 While data centers and power generation have dominated headlines amid the rise of artificial intelligence, the largest investment needs lie in transportation and water infrastructure. As a result, the opportunity set for private infrastructure extends beyond AI-related themes.

Private real estate also appears attractively positioned. Valuations have yet to fully recover to their 2021 highs, creating an appealing entry point for investors. At the same time, publicly traded real estate has delivered strong performance over the past year. Historically, private real estate performance has tended to lag public real estate, suggesting the potential for improving returns in the periods ahead.

Both private infrastructure and real estate have real asset characteristics that can be beneficial during periods of uncertainty. Tangible assets have intrinsic value, which may provide some downside protection. These assets also often benefit from long-term, inflation-linked contracts that offer a degree of inflation protection. Finally, they have low correlations to stocks, bonds, and even public real estate and infrastructure, supporting portfolio diversification.

Given their attractive opportunity set, real asset qualities, and diversification benefits, private real estate and infrastructure may be well positioned to play a larger role in investor portfolios today.

Weekly Market Update: August 19, 2026