Economic cycles are inevitable, but portfolio construction and asset selection can mitigate downside risk. Building recession resilience protects capital and creates opportunity.
Defensive Characteristics
- Essential use properties (grocery, medical, logistics)
- Long-term lease commitments with credit tenants
- Conservative leverage ratios
- Reserve funds for downturns
Counter-Cyclical Opportunity
Investors with dry powder and conviction can acquire assets at attractive prices during downturns. Preparation before recession enables counter-cyclical investing.