Interest Rate Decline and Recession Risks

Trade War and Inverted Yield Curve Pose Risks

•Inverted yield curve is a common sign of an upcoming recession, but not a forgone conclusion

•Escalation of Trade War driving investor uncertainty; potential to disrupt global economic growth

U.S. Economy Remains on Solid Footing

•Labor market adding 200K jobs per month – approaching longest expansion since WWII

•Household balance sheets are firm – less debt, higher savings, and more disposable income

•Economy not overly reliant on one sector

Low Interest Rates, Strong Demand Favor Real Estate

•Sharp interest rate drop creates opportunity to reposition portfolios or refinance real estate

•Underlying space demand remains healthy, particularly for recession-resistant assets