I always thought that bonds were the go-to vehicle for a safety net, but read recently that some people file their REITs investments under the more defensive part of their portfolio.
Their reasoning is that real estate contracts (especially commercial and logistics) are generally long term, so the companies' profits are locked in for at least a decent time period in the event of a downturn. And they also offer slightly higher dividends than bonds, say 5-7%, so you are still getting returns even if their stock goes down during a recession.
Submitted August 03, 2018 at 10:31AM by rather_hmmish https://ift.tt/2ADBzUv
