BXSL - Ways To Maximize Your Retirement With BDCs And REITs
2024-04-14 10:00:00 ET
Summary
- Inflation remains high, making a June rate cut unlikely, but creating an opportunity to buy discounted stocks in the REIT sector.
- Interest rates are expected to remain higher for longer, making it a good time to dollar-cost average and utilize dividend reinvestment plans.
- Investors should focus on quality over quantity, looking for REITs and BDCs with strong balance sheets and low non-accrual rates.
- If we get another rate hike, BDCs could see further share price appreciation as investors look for stocks with higher yields.
- Many BDCs trade at significant premiums to their NAV prices, making it a good time to turn off DRIP and reinvest into undervalued stocks like REITs.
Introduction
With the latest CPI report showing inflation remaining sticky, a June rate cut like many were predicting is likely out the window. But this creates a great opportunity for us income investors, as now is a perfect time to buy stocks at discount prices. At least in the REIT sector ( XLRE )....
Ways To Maximize Your Retirement With BDCs And REITs