What to Invest In During a Recession: Is Real Estate A Hedge Against Inflation?

What assets should you invest in during a recession? Historically real estate is a hedge against inflation, but it is also very recession proof as an investment compared to stocks, bonds and other investment opportunities. Real estate has appreciated during 5 of the last 6 recessions and investors can collect rent (i.e. dividends) from investment properties on a monthly basis.

Although we are likely in a recession currently, home prices are still appreciating making real estate a great investment including stocks that pay dividends like utility and energy stocks. The stock market is down while at the same time real estate values have continued to rise. While there have been people concerned with a housing crash, there is no evidence that a real estate market crash is inevitable, actually the opposite. The housing bubble hasn’t actually happened and homeowners have the most equity in history.

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