RE:OT but interestingYannio1,
I think you are probably right in that if interest rates go up the Reits and Utilities will initially get punished - like what happened during the "Bernanke Taper Tantrum". However, my theory, and it is just that, is that these Reits and Utilities will eventually recover. My reasoning is as follows:
These companies have been borrowing money at historic lows for the past number of years. They have been investing in their companies, adding to their holdings, and increasing earnings. Both Fortis and Emera have made acquisitions that have added value to each company, and the Reits like Allied and Artis have been buying buildings using the low interest rates. If/when inflation returns and if/when interest rates go up, these kinds of companies will have locked in lower rates for at least 4 or 5 years and eventually they will be able to pass along costs in a rising inflation economy by increasing the cost of their services or rents. This is my theory and I'm keeping my Reits and Utility stocks, almost all of which have increased their dividends over the last 5 years and all of which have stock prices that have greatly increased. Again, just my two cents worth.
Lundu