Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

"REITS OUTPERFORM WHEN THEY CUT RATES"

[garyreins]

Lol, CAD reits are red YTD and TSX is  up like 17%.   And we had 1.25bp worth of cuts in canada and 50bp in the US

Honestly not looking like anything under the sun is going to make these guys come back, which I would consider XRE $18-20 so a bit higher than where we were early September.  They just tanked in record time.  If it isnt the 10yr, what will it be next? inflation going back up?

[Torontojay]

LOL.  Take a look at the lovely chart for reits following the Sept 18th rate cut.  Oh and btw, did I say that they also cut rates by 50 bps on September 18th 2007? Inflation moved a lot higher in 2008 with the rise in oil prices but the recession had already begun by the start of the year.   

[garyreins]

You did say REITS/markets would fall after the first rate cut, but NOT for the reason you described. You suggested it would mean the economy is not doing great and a recession is incoming.  In this case, it was the opposite- MARKETS surged and bonds dumped because they are selling a "no landing" economy will return to growth scenario.  Its actually counterintuitive to have this

[Torontojay]

To be fair, I said that historically speaking a cutting cycle is a leading indicating of a hard landing. It could take time to play out and that's still my base case. If I'm wrong, then the 10 year is moving higher than in the past which puts downward pressure on stock prices.