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Keep an eye on the following investments, as you consider getting in before a late-year bounce.
Unlike single-family homeowners, many multifamily investors finance their apartment buildings with floating-interest debt.
High interest rates have sent monthly loan payments sky-high for many multifamily owners.
Thats not the only headwind the industry has faced, either.
Rents have stagnated and even declined in some markets, while labor and insurance costs have soared.
High interest rates also drive up cap rates, which means property values have declined.
These factors have brewed a perfect storm to put many multifamily owners upside down and cash flow negative.
However,multifamily property valuesand cash flow typically improve as interest rates drop.
Most industry analysts expect rate cuts starting in September, which will offer welcome relief to the multifamily industry.
Since you probably arent in the market to buy a200-unit apartment complexon your own, consider real estate syndications.
They let you invest as a silent partner, known as a limited partner or LP.
That doesnt strike most investors as unexpected since everyone expects rates to fall in the coming months.
To take a less beaten path, consider investing in private notes currently paying high interest rates.
These notes may start yielding less in 2025.
Dividend Stocks
When bonds pay high interest, high-yield dividend stocks lose their luster.
Falling interest rates add some shine back to high-yield stocks.
But thats not the only reason they stand poised for a comeback.
But many investors have started questioning the economic fundamentals behind this AI rally.
When investors start feeling defensive again, theyll flock to cash flowing blue chip companies.
And the industry has heard him loud and clear.
Of course, not every one of those dollars has flowed to Trumps campaign.
In short, expect a crypto pop if Trump takes the White House.
Oil and Gas Stocks
Likewise, the oil and gas industry stands to gain if Trump wins.
Expect more drilling leases and less regulation for the fossil fuel industry if Trump wins the election.
Green Energy Stocks
The same sword cuts the other way, however.
If Kamala Harris wins the election, expect an administration that is far friendlier to the green energy industry.
In late August, theBiden-Harris White Housepublished a press release announcing more aggressive rollouts of green energy projects.
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