1 Thing Everyone Gets Wrong About Safehold
Inflation is on everyone's mind. According to the Bureau of Labor Statistics, the consumer price index (CPI) increased by 7.5% over the past year, the highest 12-month increase in the CPI since 1982. When inflation numbers start hitting 40-year highs, investors are going to notice and anticipate what is likely coming next: rising interest rates.
A rising interest rate environment can be particularly challenging for lenders. Inflation fears have likely been the cause of ground-lease real estate investment trust Safehold's (NYSE: SAFE) stock dropping 35% from its high a little over six months ago. While inflation is something that investors should be mindful of, it shouldn't be a reason to shy away from this alternative lender. Here's what most investors are overlooking when analyzing Safehold's business.
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Source Fool.com
