TSX:AX.PR.E - Post by User
Post by
garyreinson Aug 14, 2024 10:38pm
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Post# 36179838
I legit cant see how CAD reitS bend over again (>3% losses)
I legit cant see how CAD reitS bend over again (>3% losses)If we get more bad unemployment or economic data, bond market will be pricing in more steep cuts then they are already doing, which makes REITS an attractive option by far as lets say 2 year bond goes to 3.5% in US and maybe 2.5% in CAD. With REITS delivering 8-12% AFFO cash flow, the divergence is too steep to ignore for income investors.
If economic data is ok and the inflation remains sticky with more above average prints. in the coming months....well, that would not look good on team Biden nor make much sense unless the cenrtal banks wanna admit we are in STAGLATION.
So unless Mcklenn is going to pause his hikes in the 4-4.5% range, REIT yields should continue to move down in the next couple months