As we approach 2024, the economic landscape is set to undergo significant changes - particularly with the Federal Reserve expected to pivot from its long rate-hike campaign. After a lengthy stretch of raising interest rates to battle stubbornly entrenched inflation, policymakers signaled after the December meeting that three quarter-point cuts could be on the horizon for the next year.
That should bode well for dividend-paying stocks, which have underperformed this year as high interest rates and surging bond yields made alternate investments more appealing. In particular, the Fed's pivot could benefit Real Estate Investment Trusts (REITs), considering the industry tends to rely heavily on debt to acquire more real estate.
