Written by: Ben Brundage, Capital Formation and Investor Relations 

In today’s market environment, a clear pattern is beginning to emerge among investors, one marked by heightened caution and rapidly shifting sentiment, sometimes changing week to week. 

This uncertainty isn’t irrational; rather, it reflects a complex global backdrop of inflation concerns, evolving policy, geopolitical tensions, and a general sense that something could break. The real question becomes: how should investors respond in times like these? 

Our founder, Matt Ricciardella, recently attended the Berkshire Hathaway Shareholder Meeting in Omaha, where he was particularly struck by Warren Buffett’s emphasis on rationality. Buffett noted that remaining level-headed often matters more than having a high IQ when it comes to successful investing. It reminded Matt of an old Forbes article that left a lasting impression on him. In 1979, during another period of economic stress, Buffett wrote: 

“Uncertainty, actually, is the friend of the buyer of long-term values.” 

These words aren’t just quaint; they’re tactical. 

Historically, periods of uncertainty often lead to asset mispricing. In volatile markets, even strong companies and stable assets can trade at discounts due to fear-driven selling. For the long-term investor, this isn’t a red flag, it’s a window of opportunity. 

But capitalizing on that window requires discipline. As Buffett also said: 

“The most important quality for an investor is temperament, not intellect.”  

Diversification as a Defensive Strategy 

For HNWIs and serious retail investors alike, this isn’t the time to go all-in on speculation. It’s the time to diversify intentionally, to construct portfolios that can weather multiple economic scenarios, from soft landings to full-blown recessions. That means: 

• Balancing public equities with private exposure 

• Including real estate for both stability and income generation 

• Allocating to recession-resistant sectors  

Real Estate: An Anchor in Turbulent Waters 

Real estate remains a cornerstone for many of the world's smartest investors, and for good reason. Quality real estate tends to provide consistent cash flow, appreciation potential, and tax efficiency. During inflationary or uncertain periods, real assets may offer both a hedge and a haven. 

Not all real estate asset classes perform equally, especially during periods of economic uncertainty. However, housing remains one of the most resilient segments, particularly affordable and attainable housing.  

One such asset class gaining traction is manufactured home communities. As highlighted in Crystal View Capital’s article, these communities present a compelling opportunity. Not only do they address the urgent need for affordable housing options, but they also offer investors attractive risk-adjusted returns and historically low vacancy rates. 

With demand for affordable housing outpacing supply, investing in manufactured home communities aligns both with market fundamentals and long-term demographic trends. For real estate investors seeking resilience and responsible growth, this sector is worth serious consideration. 

Recession-Resistant Asset Classes 

Some sectors and asset classes are simply better positioned to withstand downturns. I will focus on the one I know best: Manufactured Home Communities.

The Benefits of Manufactured Home Communities  

• Stable Cash Flow: MHCs often provide consistent rental income due to the high demand for affordable housing. Even during economic downturns, people need a place to live, which can lead to lower vacancy rates compared to other real estate investments.

• Value-Add Potential: MHCs often have opportunities for improvements, such as upgrading amenities, increasing occupancy through a home sales/rental program, enhancing infrastructure, or increasing operational efficiencies. These improvements can significantly boost property value and rental income. 

• Tax Benefits: Real estate investments typically come with various tax advantages, such as depreciation (which can be accelerated through cost segregation studies), which can enhance overall returns. 

• Growing Demand: The need for affordable housing continues to grow, driven by factors like urbanization and demographic shifts. This trend supports long-term occupancy and rental increases. 

• Lower Operational Costs: MHCs often have lower operational costs compared to single-family rentals, especially with economies of scale in management and maintenance. 

• Community Stability: MHCs can foster a sense of community, which can lead to longer tenant retention and reduced turnover costs.  

Slow Down. Do the Work. Find the Right Partners. 

In moments like these, the temptation is to act quickly, rotate out of stocks, chase the next "safe" bet, or follow the latest trend. But speed isn’t the advantage, clarity is. 

This is a time to slow down, not retreat. Reassess your goals. Revisit your risk tolerance. Above all, do your homework. Understand what you own and why you own it. 

More importantly, surround yourself with time-tested partners in stable, resilient asset classes. Whether you're entering a private credit fund, a real estate opportunity, or alternative investments, partner with firms and managers who have navigated previous downturns—not just ridden recent bull markets. 

Look for:

• Track records 

• Transparency and alignment of interest - GP’s with significant “skin in the game” 

• A disciplined investment philosophy  

Trusted partners are the bridge between opportunity and execution, and they can make all the difference when markets get noisy.  

The Opportunity in the Uncertainty 

While the headlines are loud and investors are understandably skittish, it’s worth remembering true long-term value is rarely found in calm, euphoric markets. It’s found in the moments when others are unsure, when prices have detached from fundamentals, and when the emotional pendulum swings too far in one direction. 

That’s when the disciplined investor, the one who sticks to a well-thought-out plan and focuses on long-term value, can quietly build wealth. 

So, whether you’re overseeing a $1 billion family office or making your first $50,000 investment, the playbook remains the same: 

• Stay diversified 

• Focus on quality 

• Invest with conviction when others hesitate 

• And most importantly—stay calm 

Because while market sentiment will always fluctuate, a thoughtful, tempered investor never goes out of style.  

If you’re thinking about where to position capital in today’s uncertain environment, we’d love to connect. Our team can walk you through current opportunities in manufactured housing and other recession-resistant assets. Schedule a call with our team today.