Commercial real estate safe from downturns? If not what?

[Jack B.]

What can you park your money in (other than cash) that protects it from down turns such as the 2007 bubble? I don't believe we are in one now, but when they time comes, I want to put my money into assets that are sheltered from it. I thought commercial was a good way to go since they are valued off their NOI rather than supply and demand like houses are. But I've talked to a few people that said that commercial still goes down in value in those situations. Is that accurate?

If so, then where to invest your money to cash flow but not lose a ton of equity? I thought about buying houses paid in cash and just soaking up the cash flow for years, but with the 1031 rules, I have to have a mortgage the same size as what I sold. So that put a stop to that idea.

Surely there is something that one can invest in that doesn't cycle like residential real estate does.