The 2016 financial market is certain to continue to be plagued by volatility. Due to poor prospects in the world economy, particularly in China and other emerging markets, most investors seem to be overwhelmed. I'm not saying that a strong deceleration in China is certain to bring developed economies down with it, but it may act as a catalyst for a substantial change in perception. I was interested to learn that a week ago the Royal Bank of Scotland (RBS) strongly encouraged clients to step away from the equity markets completely and suggested that they invest in high quality bonds.
There's no denying that 2015 was volatile, largely due to investors being overwhelmed by managing both potential domestic and overseas risks. When the Fed threatened to raise interest rates, the market would sell off. In fact, the number of sell off attempts was so high that day that the Fed had no choice but to announce the interest rate hike was a nonevent day. With the Feds clearing the path, investors have shifted their focus overseas, primarily on China.
Due to equity REIT stocks appearing to correlate with the financial market's ups and downs, REIT share prices have been significantly impacted. Apart from lodging ...
/www.benzinga.com/real-estate/reit/16/01/6150207/u-s-equity-reits-step-away-completely alt=U.S. Equity REITs: Step Away Completely?>Full story available on Benzinga.com
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