Last month, the Federal Reserve raised its benchmark interest rate by 75 basis points, the highest increase in a single meeting since 1994, and could raise rates further to fight the multi-decade high inflation. As a result, many analysts expect the economy to slip into a recession.
In addition, a decline in consumer spending and other macroeconomic headwinds are expected to keep the stock market under pressure. Amid this environment, investors could turn toward large-cap REIT stocks to hedge their portfolios against the market fluctuations, as they offer a steady income stream through dividends.
