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Over the last week, we watched the S&P 500 shed a paltry 2% due to growing concerns about the global economy and the ongoing coronavirus outbreak.
Markets responded the way markets have become trained: Investors expect that the U.S. Federal Reserve will cut rates yet again to support stocks.
The futures market suggested on Friday that it expects the Federal Reserve to slash rates. According to Fed Watch, markets priced in a 60% probability of a rate cut by June 2020.
If interest rates fall yet again, it will be further evidence of the central bank's war on savers. Income investors continue to face incredible odds to sustain their nest egg and can't rely on U.S. bonds as a reliable source of capital.
The Best REITs for 2020 pack a powerful one-two punch of income and eye-popping share-price growth. Click here now to get our top three picks for free.
To combat this, investors should consider assets that outperform in low-rate environments and can provide massive levels of cash flow to suit their needs.
Our favorite way to play low rates is through real estate investment trusts (REITs).
They provide stable cash flow, a massive tax benefit to juice investor returns, and the appreciation upside from their underlying real estate assets.
Let's discuss one of the best to own this month...
The Top REIT to Own in February
Right now, economic jitters continue to rattle investor sentiment. If you're looking for a safe dividend and a reliable place to generate income, consider the higher-end hospitality industry.
Companies that operate large convention spaces will continue to generate business as industry trade groups, and large organizations fill their hotels and meeting spaces for vital conferences and annual events.
Perhaps no one does it better or maintains a stronger reputation than the operator that we're discussing today.