Well-managed REITs can weather this headwind
“Interest rates are to asset prices, you know, sort of like gravity is to apple” – Warren Buffet, Berkshire Hathaway 2013 Annual General Meeting High-interest rates have cast a long shadow over the...How quickly things change.
Just three months ago, I was writing about imminent interest rate cuts.
Now, there are concerns that the policies under the new Donald Trump administration might result in an inflationary environment.
To rub salt into the wound, the latest speech from the US Federal Reserve Chairman suggests a potential pause in rate cuts.
The Chairman stated, “The economy is not sending any signals that we need to be in a hurry to lower rates.”
The question is, how will the above policies impact Singapore investors?
By now, we know what happened to real estate investment trusts (REITs) when interest rates were raised in 2021.
It begs the question, if indeed interest rates are to remain high, are REITs still good investments?
