Recession-Resilience: Why I Buy "Boring"
When the S&P 500 bleeds, storage collects rent. Why 'boring' assets are the ultimate hedge against volatility.
In 2008, the S&P 500 lost 38.5%. REITs took a beating. Residential housing crashed. Self-Storage REITs returned roughly -3%. In the context of a global financial meltdown, 'flat' is the new 'up.'
And in 2020? Storage was one of the only asset classes to see increased demand during the pandemic.
Why Storage is Antifragile
Self-storage is unique because its demand drivers are uncorrelated with the glorious economy. In good times, people buy more stuff (boats, RVs, toys) and need storage. In bad times, people downsize, move back in with parents, or dislocate—and need storage. It is a hedge against chaos.
The 'Boring' Premium
In a world obsessed with Al unicorns, crypto swings, and 100x venture bets, buying concrete boxes feels incredibly boring. But wealth is rarely built on excitement. It's built on predictability.
At Belrose, we are placing heavy bets on this asset class specifically because we foresee economic turbulence. When the yield curve un-inverts and the recession indicators flash red, I don't want to be holding speculative tech stocks. I want to hold an asset where 300 individual customers pay me $150/month via auto-pay because they literally cannot fit their lives into their houses.
It’s not sexy at cocktail parties. But the cash flow checks clear every single month.