TSX:ERE.UN - Post by User
Comment by
SusanBollandon Jul 22, 2022 9:55am
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Post# 34842802
RE:The bond market is always smarter than the stock market
RE:The bond market is always smarter than the stock marketJtpatrol1 wrote: "Interesting that with all the talk about "rising interest rates" the real cost of money, whether its the U.S. 10 year or the Canadian 10 year is around the same as it was back in late April.... despite the central banks raising rates twice in that time"
Again, the bond market is telling you that they cant materially raises rates, and if they do the bond market is telling you they will have to be cutting rates in 6 months to stimulate a bad economy ( caused by raising rates ) .....
You cant make this crapp up
I still feel 100% confident rates are not going materially higher and may in fact have to be cut in 6 to 9 months, thus their will be slim to no change long term in NAV
Recession does not bother me as the impact to Residential apartments should me negligible. People have to live somewhere, they can cut back on several things but rent would be the very last !!
Netherlands has strong demand for apartment rentals and no new supply, their occupancy last quarter was 98.6%
ERE.UN has really no inflation exposure as utilities are paid by the tenant and it has no employees.. They pay CAP REIT a % of their revenue to manage the properties