TSX:KMP.UN - Post by User
Comment by
DanielDardenon Feb 25, 2024 1:58pm
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Post# 35897944
RE:A Lesson From 2008
RE:A Lesson From 2008DanielDarden wrote: For perspective, KMP was purchased initially @$4.00 in Dec./08 while most were fretting about high interest rates and their impact on REITS. Most could not dump fast enough as the pundits were preaching doom. With a constant DRIP at a 4% discount, the ACB has risen to ~$6 while the original investment has quadrupled.
The morale simply is that that when the fundamentals are sound, you trust management and the Board, you buy regardless of the noise. You may not be rewarded immediately, but in most cases, you will be rewarded because others will buy higher when they are more comfortable.
Just like in 2009, the uptrend has begun with further improvements as rate cuts appear on the horizon. The real gains will come when most realize that maturing GICs can not be reinvested at the same rates. Apartment REITs should be the first beneficiaries of that money.