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Twenty nineteen was a great year for stocks. Nearly all sectors and types of equities, including REITs, soared in the last 12 months. But that's thanks to the Fed's low interest rate regime. Not only have income investors been left out in the cold, but the stock market's surge could sputter in 2020.
The gains were spectacular and mostly unexpected as the economy teetered on a globally fueled slow down.
Despite the risks of recession, risk trading was most definitely on.
Inflation was blown to bits, and most everyone knew it.
That's why the yield curve flattened and, for an ever brief moment this past summer, inverted.
The Fed quickly reacted to bond market forces and adjusted short-term rates lower.
That did the trick in steepening the curve and allowing equity investors to proceed apace without risk of a decline.
Crisis averted, but that pushed yields down across the board.
Our top REIT for 2020 could climb to five times its current price, and shares yield a solid 7.9%. Click here to get the Best REIT to Buy for 2020...
So where does that leave us as the calendar turns?
About the only thing that is certain is that rates are going to be low.
I believe stocks will go up in 2020 absent any surprises. I just believe those gains will be in the single digit range at best.
That's why I want REITs in my portfolio.
REIT investors get paid now. They don't have to wait for appreciation.
The dividend is all that matters, and as long as that dividend is paid, all will be good in 2020.
When an investor can lock in 5% annualized return, who wouldn't take that deal?
Interest rates at all levels of the curve are moving lower with little sign such will change.
Getting 5% then is double or triple current one-year rates in the market.
The Best REIT to Fight the Fed's Interest Rate Plan
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