It’s no secret that inflation is breaking record 40-year highs, as it just hit 8.5%. High inflation and other factors have led to an inverted yield curve in March 2022. With an inverted yield curve, short-term Treasury bonds have higher interest rates than long-term ones, which normally isn’t the case.
An inverted yield curve is often interpreted as an early predictor of a recession. The yield curve inverted before the 2001, 2008 and 2020 recessions. However, real estate investment trusts (REITs) can be a good investment during high inflation since they earn most of their revenue from tenant rents, which increase during this time.
