Summary
- There are certain REIT sectors that can weather most economic storms that come their way.
- But then there are those you should automatically expect to take a hit.
- I’m not expecting anything as intense as what we saw with the last recession. That was one for the books.
- However, even less-significant downturns have proven to be unfavorable for the sector.
- This idea was discussed in more depth with members of my private investing community, Rhino Real Estate Advisors. Get started today »
There’s no such thing as a perfect investment.
Let’s start with that reminder before we get into the five REITs you really want to avoid in the next recession. In theory, real estate investment trusts are solid, dividend-producing, recession-resistant entities to put your money in.
In practice, when run by well-connected, well-experienced management, REITs let you into the moneymaking world of real estate without taking on too much of the associated risk.
But in both theory and in practice, there is still at least some associated risk.
Last week, we explored a short list of the best-positioned REITs to consider in case of a recession. Today though, let’s look at the opposite side of the real estate coin: companies that won’t be so properly placed when the chips are down.
After all, successful investing isn’t just about knowing what’s worthwhile. It’s also about knowing what to avoid.
