Technically, the term "safe-haven" is redundant.
Havens are, by their very definition, safe. Just ask Dictionary.com, which describes the noun as "any place of shelter and safety; refuge; asylum."
So, to any hardcore logophiles (word-lovers) out there, if you're objecting to my title, I understand. But here's why I'm leaving it as-is anyway, starting - and perhaps ending - with a simple question...
Do you really think you can get enough safety these days?
If that thought isn't enough, let's consider these actual facts:
- Almost the whole world went into or is still in some form of lockdown, putting intense pressure on the global economy.
- At last check, the U.S. unemployment rate was 14.7%.
- As of mid-February, the S&P 500 was sitting at over 3,300, only to plunge more than 1,000 points by the end of March. It has since recovered a good chunk of that, but it's still struggling comparatively speaking.
- So far, dozens of real estate investment trusts (REITs) have cut or suspended their dividends due to the unprecedented situation they find themselves in. And who knows how many more will have to follow from here.
- Doomsday predictions abound about "the new normal" we should expect. Essentially, they say, get used to wearing a mask and staying close to home for the rest of your life.
With all that going on, don't you want the safest kind of safety you can possibly get right now?
Say No to the Doom...
For the record, I don't actually expect the worst of the worst predictions to come true. They almost never do, as evidenced by the Mayan calendar and Y2K scares.
I will, however, grant you that this time really is different in many ways. Certainly, there's no other point in history when the entire world has acted, reacted, or overreacted like it
Markets will eventually recover and may reward patient investors...
Investors need to remain disciplined with their investment process throughout the volatility. At iREIT on Alpha we offer unparalleled research that now includes a "daily" vodcast and mortgage REIT coverage. "There is a great opportunity" to take advantage of the selloff.. subscribe to iREIT on Alpha (2-week free trial).
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