Increased Volatility Could Be Looming For 2024 Election Heres One Way Investors Are Looking To Hedge

–News Direct–

By Faith Ashmore, Benzinga

As we come up on an election year, investors and politicians alike are interested in how it will affect the economy. The stock market generally can experience increased volatility during election years due to the introduction of uncertainty. This may leave investors grappling with the potential outcomes and policy changes that may occur as a result of the election. The campaign period often fuels market fluctuations as investors and companies react to political rhetoric, policy proposals and potential shifts in government leadership.

Those looking for less volatility and more stability may want to look at necessity-based commercial real estate. This asset class tends to be largely insulated from the daily swings of the market, and by extension, the volatility that traditionally occurs in election years.

Unlike other types of real estate and the traditional stock market, necessity-based (properties that are essential for everyday living including sectors such as healthcare facilities, grocery stores, multifamily housing and more) properties tend to have consistent demand. This relative stability can help mitigate the risks associated with market fluctuations and it seems like the current administration will seek to keep interest rates relatively steady through the end of 2024, according to necessity-based real estate firm First National Realty Partners (FNRP).

FNRP is a renowned necessity-based real estate firm that has established itself as the leader of the specific industry. The company was the #1 privately-held acquirer of grocery-anchored retail real estate in 2022. With a track record of success, FNRP has established itself as the go-to investment firm for those seeking to navigate the ever-changing market and achieve long-term wealth preservation. With over $2 billion in assets under management, FNRP has consistently demonstrated its ability to deliver results for investors. Their portfolio boasts an impressive 60 current assets held, showcasing their expertise in identifying and acquiring high-quality properties that align with their investment strategy.

Since its inception, FNRP has distributed over $100 million to its valued investors a testament to their commitment to generating returns. Their successful growth is evidenced by the acquisition of over 11.5 million square feet of gross leasable area (GLA) across 23 states, solidifying their nationwide presence and extending their reach to diverse markets.

Commercial real estate investments are known for their ability to provide stable cash flows, appreciation potential and risk mitigation through diversification across different properties and tenants particularly for investors interested in grocery store-anchored properties.

Grocery-anchored properties are known for their stability, as these types of properties typically have high occupancy rates and provide regular income from stable tenants. Grocery stores are considered to be a recession-resistant asset class, making them a potentially valuable option for investors who seek the relative stability and safety of income-generating properties.

As the election year approaches, we may see the market shift and uncertainty increase. FNRP's strategy of investing in necessity-based, grocery-anchored shopping centers might be a good fit for investors trying to combat potential market volatility.

Learn more about FNRPs upcoming deals here.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

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