Industrial in a Recession
Recent market turbulence has left investors with questions about what this moment means for the industrial sector. Its dramatic evolution over the past few cycles — largely the result of rapid e-commerce growth — offers several lessons and opportunities that can insulate the sector from total disruption. David Egan of Stockbridge dives into how the sector performs in a recession and future opportunities.
How does industrial typically fare in a recession?
Industrial, as an asset class, tends to track closely with the economic cycle. As the economy slows, demand will typically follow, often lagging a quarter or two. Looking back at data over the past few decades, we can see a tight correlation between GDP and demand.
To download the full article, click here. To download the whole magazine, click here.