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Retirement Security: As Interest Rates Retreat, Buy These REITs

Retirement Security: As Interest Rates Retreat, Buy These REITs

There are many things that investors can profit from in the markets. Changes in interest rate direction is one of them.

Have you considered upping your REIT exposure to take advantage of higher yield opportunities?

We’ll highlight several that may give investors a leg up in this sector.

They say a picture is worth a thousand words. With Wednesday’s massive retreat in the 10-year treasury yield, from 3.13% days ago, to just 3.02%, only four words are necessary. Rate retreat, REITs roar.

An 11 basis-point decline (a basis point is one hundredth of one percent) from 3.13% in such a very short time frame is massive by any description.

11 basis points/313 basis points = 3.51%

Fed’s Minutes Move The Bond Market

With the Federal Reserve’s minutes from their previous meeting expected to be released at 2 P.M. on Wednesday, expectations were that the Fed would raise rates again at their June meeting.

The previous meeting’s minutes indicates all Fed participants expected the economy to strengthen and inflation to rise in the coming months.

Krishna Memani, chief investment officer at OppenheimerFunds, said:

If we get any surprises, it would be on the accommodative side, but I don’t think that will happen.”

The Fed’s minutes serve as a window into the minds of the Fed governors, how they’re thinking about the strength of the economy. In their effort to stay ahead of inflation, these minutes are expected to show the Federal Open Market Committee on track to raise rates in June.

Everything appears to be going according to plan, with consumer prices rising 2% last month, the labor market continuing to tighten and unemployment at 3.9%, the lowest it’s been in 17 years.

Some analysts believe this points to rates rising on the short end, but flattening or even decreasing on the long end.

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