Don’t worry
Hi all, I just want to share my two cents worth on the price moevement of REITs now. Based on my understanding, the average retail investor does not have much influence on the movement of share prices. Share prices move depending on the amount of money coming in or going out from investment funds. And investment funds move according to trends and needs. So when the share price drops, it is mainly due to funds selling to cut losses. Funds don’t hesistate to do this because even if they lose money, it’s not their money, it’s their clients money. That is why in 2022, 90% of funds lost money. So if you have no urgent use of money, selling now would be a huge mistake. In due time, the tide will turn and the funds will return and that’s when the price will reverse. If you sell now, you lose money. But the funds that brought the price down don’t lose money beacuse it’s not their money to begin with. The fund managers still get paid even if they lose money for their clients.
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102918195 : don't buy reits till kind of confirm interest rates will cut...only when cut rates will institutions start to consider reits
dydxequalszero OP 102918195 : That’s one way to look at it. But rate cuts are inevitable, now may be the time to accumulate and take dividends first. You never know when the rocket will takeoff.
102918195 dydxequalszero OP : true..from what I see most continue to drop...only cict is strong
beaver Queen : why interest rate not cut yet? can explain?
dydxequalszero OP beaver Queen : Interest rates are cut only if inflation rates drop below a certain number. In the case of US Fed, they are looking at below 2% inflation. Currently it’s still at 2.6%. With high interest, people tend to spend less and inflation will slowly drop, so it’s just a matter of time. Be patient, the stock market is really a device to transfer wealth from impatient people to patient people. Nothing more than that. If you’re impatient and sell your shares at a low price tmr, and the share price rises next week,you have effectively transferred your money to the person who bought your shares. The total amount of money remains the same.
beaver Queen : understood. thanks for explaining
beaver Queen : thanks. I read many times of what u wrote. I must remember.
101699091 : Now all the investment funds cutting losses and shares price dropping. You still accumulate or wait?!? You want to loss more money?!? You should cut your losses. Wait for the investment come back to buy then you buy. How you know? Wait for dydx to be equal zero. When gradient is zero, you know it is time to buy.
104238715 101699091 : what is dydx = 0 ? or are u simply referring to his profile name dydxequalszero![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
dydxequalszero OP 101699091 : Hi I do agree that most times we should have a cut loss point. But currently the REITs are really trading so low. All the 3 Mapletree trusts are trading below Covid levels with yields above 6 - 7%. At this juncture, the prices are really far too discounted already. No one knows where the true bottom is so for me personally selling now has more downside than upside. If I sell today, and it starts rebounding tmr, then I’ll lose out big time. Moreover, my Reits pay quarterly dividends. Based on my holdings, even if the share price doesn’t move, I’ll be able to collect $6000 in dividends from now till the end of the year. So it’s not to say I stand nothing to gain if I continue to hold.
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