Good day everyone. Time for another look at SREITs. [Share L...
Good day everyone. Time for another look at SREITs.
In this review we can see a reversal on the chart. This is likely connected to the current sentiment towards the US economy and interest rate. I also explore other possible reasons affecting the SREITs sector in the article too.
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dookiro : I thought REITs supposed to go up when interest rate is dropping?
DividendKopi OP dookiro : Generally yes. But the effect usually takes time to trickle down. Furthermore more we are still in the early stages. In reality the interest rate is still high. So there will be volatility as sentiment reacts to developments. Especially when economic data suggests inflation may still be lingering thus affecting the pace of cuts.
_MK_Watcher_ : More data centres will be needed in view of continously increases in demands. (e.g. ChatGPT maker OpenAI to set up office in Singapore by end 2024, the second location in Asia, after Japan) This will probably ripple more similar businesses and related operations to do the same.
DividendKopi OP _MK_Watcher_ : Am also looking out at AI trends too! All the supporting infrastructures may see upside pressure indeed. Thanks for sharing!
102098223 : If bond yields stay high then will affect reits too.
DividendKopi OP 102098223 : Yeah. That is likely. As it makes the REITs less attractive compared.
102098223 DividendKopi OP : Yea which is quite surprising cause bond yields have stayed high even after fed’s pivot. So it depends on how the yields of new bonds are going to be moving forward.. but i think eventually market will have to rebalance towards the new normal of rates. Afterall lets not fool ourselves, inflation is not coming down lol.
DividendKopi OP 102098223 : Thank you for the insights