Real Estate Investment Trust perform very well when interest rates are low.
However, whilst rates at the Federal Reserve are seemingly remaining high for the foreseeable future (albeit with a 25% basis point cut in September priced in according to the odds on Polymarket currently at 70%), they may begin to come down rather quickly when Federal Reserve Chair Jerome Powell’s term ends 15th of May 2026.
Some of us are less patient than others for a change of direction towards a more dovish stance.
As it is highly likely that President Trump is looking to lower rates by appointing a more ‘favourable’ chair – with currently 11 candidates in play – if you are a yield hunter looking to build up a nest egg with REITs, the seasonality of August/September would be the opportune time to look for P/E bargains, such as REFI.
The Speculatour’s Disclosure: Not financial advice. No guidance is provided for any particular investor, asset prices can fall as well as rise. The Speculatour is not a licensed securities dealer, broker, investment bank or advisor.
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