Is Your Investment Portfolio Prepared for Another Recession?

Summary:

The timing of the next recession is unknown.
The S&P 500 lost half its value in the Great Recession.
Some alternative investments may help stabilize your portfolio in times of economic uncertainty.

Are you prepared for the next economic recession? Some experts believe it may be closer than we realize. That raises an important question: Will your portfolio be resilient enough to weather the storm?

During the Great Recession, from 2007 to 2009, the average American’s retirement account dropped by 25 percent. The S&P 500 alone lost half its value. Many people—especially those nearing retirement—watched years of hard work and savings disappear almost overnight. The real question we should all be asking is: how would our current portfolios hold up if another recession struck? How would our daily lives change? What goals or aspirations might we have to postpone due to an unexpected market downturn?

The reality is that many of us aren’t prepared to answer these questions. After riding the momentum of a strong economy for years, we may have grown complacent—even though a market correction is inevitable. Now is the time to take a closer look at our portfolios and identify opportunities to generate stable, recession-resistant returns, regardless of economic conditions

Senior Housing:

There are lots of things people can scrap during a recession – but care for family members isn’t one of them. Need-based investments are often the most reliable, and there is no greater need right now – or for the foreseeable future – than senior housing. From 2020 to 2060, the 85+ population will more than triple. Studies show some 2 million senior housing units will need to be constructed to meet demand anticipated by 2040 (ASHA). Over the past decade, senior housing has demonstrated robust performance, with a 10-year annualized total return of 9.33%, surpassing the NCREIF Property Index (NPI) overall return of 8.34% during the same period.

Multi-Family Housing

In recent years, economic challenges have prompted many families to seek smaller, more affordable housing options. Between 2019 and 2023, the number of owner-occupied housing units in the U.S. increased by 8.4%, rising from 76.4 million to 82.9 million, while rental households grew by approximately 1.3 million during the same period.

Looking ahead, projections from the Harvard Joint Center for Housing Studies indicate that household growth in the U.S. is expected to slow, with an increase of 8.6 million households between 2025 and 2035, averaging about 860,000 per year. This marks a decline from previous decades, where growth ranged from 10.1 million to 13.5 million households per decade.

Despite a surge in new rental housing supply leading to a temporary cooling of the market, rental affordability remains a significant concern. As of early 2025, the national median monthly rent stands at $1,370, reflecting a modest decrease from the previous year. However, more than half of renter households continue to spend over 30% of their income on housing costs, underscoring the persistent affordability challenges.

Self-Storage

During the 2008 financial crisis, self-storage demonstrated remarkable resilience, with self-storage REITs posting a gain of 5% in 2008, while other commercial real estate segments experienced net annual losses between 25% to 67%. This resilience is partly due to the industry’s low overhead costs, allowing facilities to break even at occupancy rates as low as 40% to 45%, compared to over 60% for apartments.

As families downsize into more affordable multi-family units during economic downturns, the demand for self-storage increases to accommodate excess belongings. This trend, coupled with the industry’s low operating costs, makes self-storage an attractive investment, even for less experienced investors.

While no single investment can render a portfolio entirely recession-proof, diversification remains essential. Incorporating assets like self-storage and senior housing into your investment strategy—whether through private equity funds, REITs, or direct investments—can enhance resilience during economic downturns.

Have Any Questions?

Feel free to reach our Investor Relations team via email: Team@seniorlivingfund.com or call 913.283.7804

SLF Investments (SLF) is a private equity investment company with 20+ assets under management that generated over $24.9 million ($99.8 million annualized) in revenues during Q4 2024. The majority of assets within our portfolio are Independent Living (IL), Assisted Living (AL) and Memory Care (MC) communities that were developed and constructed by our sponsor partners utilizing SLF equity.

Our Team.

The Senior Living Fund team is comprised of industry, securities, financial, and investment experts, as well as support personnel, based primarily in the Kansas City metropolitan area.

SLF Executive Team.

We are at an important juncture in senior care investment. We stand in the midst of the largest demographic shift in history, and we as an investment community have the ability to impact how seniors throughout the country will experience the final chapter of their lives. We must remember that capital always has a voice—and we have a unique opportunity to use that voice for the good.

-Dan Brewer, SLF Chief Fund Manager

Information on this document is not an offer or a solicitation to sell or purchase securities. Statements, descriptions, and data on these pages are for informational purposes only and relate to an investment opportunity which may be offered in the future. No offer or solicitation will be made until the necessary final documentation and agreements have been delivered to you. Forward Looking Statements. The Fund is including the following cautionary statement in this informational summary to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, the Fund. Forward-looking statements include statements concerning plans, objectives, goals, projections, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts. All such subsequent forward-looking statements, whether written or oral and whether made by or on behalf of the Fund, are also expressly qualified by these cautionary statements. Certain statements contained herein, including, without limitation, those that are identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “targeted,” “will,” “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Fund’s expectations, beliefs and projections are expressed in good faith and are believed by the Fund to have a reasonable basis, but there can be no assurance that management’s expectations, beliefs or projections will result or be achieved or accomplished.

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