As the market takes on more of a bearish mentality, investors look for alternative stocks to take shelter in. While cyclical sectors begin to underperform as the global economy flirts with a recessionary phase, defensive sectors start to look more attractive. While consumer staples often perform well during difficult times, one sector has all but faded from more investors minds since the financial crisis in 2008.
REIT's are generally good investments when other asset classes become more volatile. The real estate market isn't always correlated to the broader indexes and since 2008, many investors have avoided them based on a knee-jerk reaction that they will perform poorly when the market dips. The truth, though, is that certain REIT's are actually facing a bullish market right now.
While the Fed might have delayed its interest rate hike, it's a temporary issue that will eventually give way to a rising rate environment within the next year. This might not be positive news for prospective homeowners, but it is good news for companies that derive their income from rental prices. Continue reading "Is It Time To Consider This REIT For Your Portfolio?"