Real assets like real estate can also be a safe haven during bear markets from "summary" of The Little Book of Bull Moves in Bear Markets by Peter D. Schiff
It's important to remember that when the stock market is heading south, real assets like real estate can provide a safe haven for investors. This is because real estate is a tangible asset that can hold its value even when paper assets like stocks are plummeting. In times of economic uncertainty, having physical ownership of a property can provide a sense of security that is hard to come by in the volatile world of stocks and bonds. Real estate also has the advantage of being a stable source of income through rental payments. Even when the stock market is in turmoil, people still need a place to live, which means that rental income can provide a steady stream of cash flow even during bear markets. This can help investors weather the storm and come out on the other side with their financial security intact. Additionally, real estate has the potential for long-term appreciation, especially in desirable locations with high demand. While the stock market may experience ups and downs, real estate values tend to increase over time, providing investors with a valuable asset that can appreciate in value and provide a solid return on investment.- Real assets like real estate can be a valuable addition to any investor's portfolio, especially during bear markets when traditional paper assets are struggling. By diversifying into real estate, investors can protect their wealth, generate income, and potentially benefit from long-term appreciation, all while weathering the storm of a bear market with confidence and stability.
