Pros

• Generates cash flow (rent)

• Tangible asset with intrinsic utility

• Historically strong inflation hedge

• Can use leverage (mortgages) to increase returns

Cons

• Illiquid — selling takes time

• Property management problems (tenants, repairs, vacancies)

• Upfront capital required

• Market downturns can trap equity for years

5. Commodities (Gold, Oil, Metals, Agriculture)

Raw physical resources used in production or held as stores of value.

Pros

• Hedge against inflation and currency depreciation

• Useful during geopolitical or market uncertainty

• Low correlation to stocks/bonds

Cons

• No cash flow — only price speculation

• Can be highly volatile

• Requires storage or futures contracts • Influenced by global supply/demand shocks

6. Crypto-assets (Bitcoin, Ethereum, etc.)

Digital assets secured by blockchain technology. Some are “store-of-value” assets (BTC), others enable smart contracts and applications (ETH).

Pros

• High upside potential in emerging tech

• Borderless, 24/7 markets

• Decentralized and independent of governments

• Can provide diversification from traditional finance

Cons

• Extremely volatile

• Regulatory uncertainty

• Security risks (exchanges, custody)

• Many crypto projects fail, fraud risk

7. Cash & Cash Equivalents (Savings, Money Markets, T-Bills)

Highly liquid, low-risk assets immediately convertible to cash.

Pros

• Safe and stable

• Useful for emergency reserves and short-term spending

• No volatility

• T-bills and money markets earn modest interest

Cons

• Very low returns

• Inflation erodes value over time

• Not a growth vehicle

• Poor long-term wealth builder