RE:FRANKIE BOYRelief rally? This is hope. Sadly, no matter how much I want REITs to recover, sentiment says rates are going much higher. Rising rates will compete heavily with REITs and dividend paying stocks. You can buy a 2 year GIC over 4%. Next month, a 1 year GIC will be over 4%. Money will flow out of income type REITs and stocks, and into fixed income, until rates level out or the investment is too compelling. CAP rates will increase, NAV will drop. And lastly, margin use will fall, as rates make it expensive to borrow. This orderly fall in the market is not even panic, it's adjustment to the conditions. HR and many other stocks/REITs are a great deal. Buying and holding isn't a horrible option at these prices, but we shouldn't expect a return to NAV anytime soon.
SNAKEYBOY wrote:
Does the fed hike 75 pts tomorrow? If not I can see a relief rally. you?