1 Reason Not to Give Up on Retail REITs Even if a Recession Hits
There's a reason stocks have been so shaky over the past number of weeks. Not only have inflation levels soared beyond economists' expectations, but now, the Federal Reserve is moving forward with planned rate hikes in an effort to slow inflation down.
That's a necessary thing. But it could also fuel a recession.
As the cost of borrowing increases, consumers are apt to start cutting back on spending. The good news is that once they do, the cost of everyday expenses is apt to decrease. The bad news is that as consumers start spending less and businesses take in less revenue, widespread layoffs could ensue, stores could start shuttering, and retail investors could land in the very uncomfortable position of wondering just how bad their losses are going to be.
Source Fool.com
