Income is scarce and investors need it more than ever (funny how that happens). Bonds look very risky given the direction of rates. So where can investors turn? Take a look at three different asset classes: blue-chip REITs, preferred shares, and property-backed loans. Blue-chip REITs can be a good investment because they have high yields (e.g. 4%+), but are still quality companies. They are also often trading at a discount because of the pandemic. Check out ticker “0”, Realty Income. Private property loans are another good option, yielding 8-12% , and often having good LTVs of around 60%, which means you have some significant downside protection.
FINSUM: These are some good alternative income options. Our personal favorite are the REITs because of their liquidity, but private property loans are a good option too, especially given the new economic cycle.