Why This REIT Will Thrive During a Recession
With the Federal Reserve strongly hinting at raising fed-funds rates multiple times this year, investors' fears of a possible recession have risen accordingly. In the first quarter of this year, Gross Domestic Product (GDP) fell at a 6.5% annualized rate. According to the Atlanta Fed's GDPNow Index, second-quarter GDP growth is predicted to come in below 1%. If we have negative GDP growth in the second quarter, some analysts consider that a significant (but unofficial) indication that the U.S. is in a recession.
During recessions, stocks with defensive characteristics tend to outperform. STORE Capital (NYSE: STOR) is a real estate investment trust (REIT) with highly defensive characteristics that has an attractive yield as well. Here's why it should thrive in a recessionary environment.
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Source Fool.com
