RE:Fun time before Financials. I'm long oil, and have been since the depths of 2020. Everytime they spit out an ever increasing divi I'm nibbling away at a few REITs... SRU.UN is my current favorite. Those with good balance sheets, anchor tenants and prime real estate are very attractive.
I'm also watching the banks and tempted to pull the trigger. However as a guy who played in rental properties for years and liquidated in 2021 when the BOC first started to whisper about rates, I'm holding off.
This is JMO but to many people are going to be under water come renewal just as the housing market is slowing considerably. If rates hold or continue to rise *cough higher energy prices* cough* the loan loss provisions will stack, the amount of new loans will drop and the sentiment will be terrible. Therefore I'm holding off as I see more downside due to weakness on the retail side and negative public sentiment... When they are at it's worst is when I plan to back up the truck again. However you can't really go wrong either way, they're still attractive today if you just want to build solid core positions vs gambling on future upside potential.
To many people are still wearing their rose colored glasses or believe the BOC will save "them" with a majic overnight drop in rates instead of calculating their future cost of borrowing and preparing BUT...who knows?
I also Increased a few of my midstream pipeline positions but again, it's still oil-ish. I hold zero tech currently.
I like this game. Anyone else buying anything fun with their oil profits? Anything you're staying away from?