Historical Fed easing cycles trigger equity rebounds; if rate cuts start in Q3, investing in a recession via bank stocks could capture net interest margin improvements post-policy shift, bolstering profitability. Prior instances where the Warren Buffett indicator has pushed substantially beyond a previous high were eventually (keyword!) met with substantial selling. Though the market-cap to-GDP ratio is in no way a timing tool and can't predict when the S&P 500, Dow Jones, and Nasdaq Composite might roll over, it served as a warning prior to the dot-com bubble bursting, before the Great Recession, and in advance of the 2022 bear market. 13 Lessons From Millionaires That Financial Planners Use To Help Others Get Rich For investors seeking yield in a downturn, REITs specializing in logistics show resilience; investing in a recession here rides on e-commerce demand, with FTSE Nareit index up 2.7% since January despite rate conditions.