This Indicator Is Signaling Another Recession, But You Can Continue Earning Income Through It All

[Intelligent Income Daily]( Welcome to Intelligent Income Daily, the brand-new free daily newsletter from wealth and income expert Brad Thomas. Brad’s experience spans three decades of real estate and stock market booms and busts. Today, he and his team focus exclusively on the safest and most predictable ways to earn sustainable and growing income in any market condition. Each day, they’ll share their best research, strategies, and insights to help you reach your financial goals. That way, you can sleep well at night, knowing your capital is safe and steadily growing. You can find all past issues [here](. And if you have any questions, please contact Brad and his team [here](mailto:memberservices@widemoatresearch.com). This Indicator Is Signaling Another Recession, But You Can Continue Earning Income Through It All By Brad Thomas, Editor, Intelligent Income Daily The warning signs are flashing: A recession is likely on the way. Last week, an important economic indicator – the 10-year vs. three-month Treasury yield spread – flipped negative. I’ll explain more about it in a minute. But as you can see in the chart above, shortly after the blue line fell below the orange line in previous years, the U.S. economy went into a recession. And just last week, the blue line dipped below the orange once again. Now, while we can’t be sure of the exact timing of when a recession begins… Here at Intelligent Income Daily, we want to make sure we’re prepared in case history repeats itself. That’s why my team and I seek to find the best income-producing opportunities that can reward us, even if the rest of the economy takes a hit. These include companies that continue to provide growing dividends throughout tough times. Today, I’ll tell you what makes some of my favorite companies strong in the face of recessions, share some examples, and tell you how you can get a list of my favorite investments today. Recommended Link [WARNING: Something in the market is about to snap]( [image]( Master Trader Jeff Clark accurately predicted the crashes of 2008, 2020… and the 2022 tech meltdown. But now, he’s issuing his most timely warning yet. Only this time, it’s not a prediction. It involves a massive market-moving event that’s guaranteed to happen just days from now. Dozens of popular stocks could freefall overnight. $4 trillion is at stake. He’s sharing the details during an urgent broadcast on Wednesday, November 2, at 8 p.m. ET. [Click here for more details.]( (By clicking the link, your email address will automatically be added to Jeff’s RSVP list.) -- What Is the 10-Year vs. Three-Month Spread? The 10-year vs. three-month spread measures the difference between interest rates on long-term (10 year) and short-term (three month) government debt. It’s also called the “Yield Curve.” Normally, the spread – or difference between the two – is positive. Meaning the yield on the 10-year Treasury is higher than the yield on the three-month Treasury. That makes sense, as investors demand a higher rate of return for taking risk over a longer period. But when short-term interest rates are higher than long-term rates, the spread becomes negative. This means investors are less confident in our economic prospects over the long term… And as it’s done in the past, it signals the high probability of a recession in the coming year. In fact, the 10-year/three-month spread going negative has accurately predicted every recession in the past 50 years. [Expert who called the bottom of the 2020 and 2022 crashes releases new forecast]( And this time around, it’s important to understand the economy is weakening due to the Fed’s attempt to control inflation by hiking interest rates. When you add in all these factors, more and more people are worried about the inevitability and devastating effects of a recession. But you don’t have to be. Because one of our favorite investments is still showing signs of strength today. This Investment Grows Even Through Recessions Many of our favorite income investments are real estate investment trusts (REITs), which own and collect rent on real estate properties. And they’re well-prepared to survive the next downturn. The National Association of REITs (Nareit) recently released its quarterly analysis of the sector. And the statistics show REITs are extremely healthy. - Average occupancy, which measures the percentage of properties leased to a tenant, sits near an all-time high of 94%. - Average interest expenses as a percentage of net operating income are at an all-time low of 17%. This means that REITs are easily able to cover their debt liabilities. - Average debt maturity is at a high of over 7 years, which means that REITs don’t have to worry about refinancing debt at higher interest rates for many years. - Average REIT dividend payout ratios are near all-time lows at 65%. That shows REITs have plenty of room to increase payouts and a buffer to protect their dividends if the economy slows down. But not all REITs are equal… Most specialize in a particular type of property, and growth between various REIT subsectors is different. Office REITs, for example, are still struggling as work from home reduces demand for their properties. And hotel REITs still haven’t fully recovered from pandemic travel restrictions. Others are continuing to see solid growth. Another report from Nareit shows the fastest-growing REIT subsectors since 2018 are industrial (14%), residential (15%), retail (27%), and storage (23%). Here are some examples of quality REITs specializing in these high-demand sectors: - Industrial: First Industrial Realty Trust (FR) and Rexford Industrial (REXR) - Residential: AvalonBay Communities (AVB) and Essex Property Trust (ESS) - Retail: Federal Realty (FRT) and Realty Income (O) - Storage: Public Storage (PSA) and Life Storage (LSI) The combination of strong demand for these types of properties and the solid financial positions of these REITs means they’re likely to continue rewarding investors with dividends… even through the next potential recession. Happy SWAN (sleep well at night) investing, Brad Thomas Editor, Intelligent Income Daily P.S. The names I mentioned above are just a few examples of REITs within those specific sectors. If you’re interested in more detailed research and which REITs and other stocks are my favorite dividend-opportunities in today’s market, [click here](. [I just put together a briefing on the incredible power of REITs to help you tap into some of the fastest-growing markets in the country](. Although you couldn’t access them normally, there’s a surprising way REITs can give you exposure to these plays. [I’ll show you how.]( IN CASE YOU MISSED IT… [Will You Be Left Behind?]( The same ‘experts’ who failed to predict the last financial crisis, the rise of Bitcoin, and the shocking election of Donald Trump are warning of big trouble ahead. But once again, they’re dead wrong. And if you listen to them now, it could cost you dearly. Nomi Prins has spent the last two decades investigating the truth about our financial system. And today, she’s issuing an alarming new prediction… She says: “When you really understand what’s happening in our financial system, you’ll see the truth is MUCH stranger than the mainstream media is telling you. We’re on the brink of the greatest wealth transfer in the history of America… Many will be left behind.” [Click here to make sure you’re not one of them.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [The Trader’s Guide to Technical Analysis]( [The Ultimate Guide to Taking Back Your Privacy]( [The 101 Guide to Pre-IPO Investing]( [Wide Moat Research]( Wide Moat Research 55 NE 5th Avenue, Delray Beach, FL 33483 [www.widemoatresearch.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Wide Moat Research welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. 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