Recession Proof Investments: Why You Need Real Estate in Your Portfolio

For years, prominent economists such as Peter Schiff have been predicting the next US recession. Common sense tells us that what goes up must eventually come down. Considering the record breaking 10 plus years of US economic expansion, sooner or later their bearish predictions will be right.

Many investors are wondering what to invest in during a recession. Stocks? Bonds? Gold? Bitcoin? Real Estate? Run for the hills and wait it out? Rather than stock piling food in your underground bunker, multifamily real estate investments may be the unexpected diversification you need to strengthen your portfolio.

What is a recession?

Recessions are a healthy and natural cyclical purging of the financial system. These purges result in billions in lost asset value while also presenting great opportunity. Preventing losses is easier when you are prepared before a recession occurs.

This is why institutional investors track all kinds of economic data, statistics, ratios and yield curve inversions attempting to predict a coming recession. Unfortunately, this leads to little more than information overload and sensational headlines. So, what data should you focus on?

"One key metric to follow is the gross domestic product (GDP)

One key metric to follow is the gross domestic product (GDP), a calculation of the market value of all finished goods and services produced within a country for a set time period. A negative GDP growth rate for two consecutive quarters is a widely agreed on recession definition.