We all know how much inflationary pressures and interest rate play a part in sustaining this big bull market within the financial market.
An interest rate cut generally stimulates economic activity by reducing the cost of borrowing, which will then trickles down to benefit several sectors of the economy.
In this article, we’ll explore some of those sectors that might benefit from a potential sector rotation within these changing market conditions.
1.) Real Estate Developer or REITs
Needless to say, industries within the real estate space or investment trusts related to real estate will get the biggest cheers to a lower interest rate as this sector was traditionally the most leveraged and vulnerable to conditions that sustain a prolong high interest rate.
NikkoAM-STC Asia REIT (Ticker Symbol: “CFA”) is a familiar name amongst Singaporean investors as this gives an easy proxy to real estate investments across major Asian markets like Singapore, Hongkong, Japan....