Bros,...

There are just too many scenarios,.... and certain scenarios are specific for certain sectors and companies/REITs...

But in general, from my experience...

1) rate cuts will enable REITs to spend lesser for financing expenses, less financing expenses means more distributable income, which in turn may mean more dpu. REIT investors want more dpu. So, more investors buy REITs.

2) BUT,... rate cuts also signal a slowing economy, and a slowing economy gives rise to,.... for REITs....

i) lower rental reversions, hence lower growth in distributable income, which will normally translate into lower dpu growth.
ii) lower occupancies, which translates into low dpu.
iii) defaults in tenancies, which translates into loss of dpu..

I evaluate my REITs individually to see which will be affected in which way.

Added : One more,... iv) re-negotiation of agreed rentals earlier, translating into lower dpu.

This post has been edited by Hansel: Aug 2 2019, 01:39 PM

Raising what huge money, bro ??

On SG REITs, the latest event is the MS has just concluded a consultation activity on how to raise the gearing limit from 45% upwards,...

Yeah,.......

Steady investors,... even if the yields invert here and there,.. it takes still takes mths and yrs for the recession to come. Stay on-course.

Today, we have the Feds and the world central banks moving very fast,...

POTUS is also backing-down,..

If you sell yr holdings, you are only benefitting the people who are steady,...

The STI dropped by 2% this morning, and at noon, by 1.5%,....

Recession means 2 consecutive drops in GDP readings. Kind of a mathematical relationship.

Share price drops is a mechanism of analyses (FAs and TAs) and most importantly : SENTIMENT.

Even if a Recession hits,... do you guys think,.. today,.. the Share Price will drop as much as 2008/9 ??

He is backing-off now,...

What sell-off ? You call the recent dip as a sell-off ? Sure, sure,... you'll say,.. it's coming,.. let's see then,.

When he releases certain items supposedly to be on tariff from September 1st, he is backing-off. When he cuts certain items from the tariff list, he is backing-off. These were the things he did two days ago,... then the inverted yield curves took place when more people took up the 10-year bonds instead of the 2-year Treasuries.

He must have known this event was coming (ie more investors are taking up the 10-year Treasuries),... hence, to maintain his voters' confidence, he quickly 'backed-off' first. These are the signs,...

Well,... you can have your own argument,... but let's see,... you are waiting for a 30% drop in the indices, right ? So,... when do you think the 30% drop will come ?? Give a timeline !

Yeah, bros,.. I'm exhilirated too,....

Don't be too sure,.....see this,... this is also delayed now,...

"The S&P 500 Index gained for a third day on Monday (19 August), led by chipmakers, as US Commerce Secretary Wilbur Ross said the nation will delay restrictions imposed on some business operations of China’s Huawei Technologies Co Ltd."

Starting to delay their actions here and there,...

THAT'S RIGHT ! HE CONTRADICTED HIMSELF AGAIN !!!!!!!!!!!!!!!

AGREED !!

ACTSY FELLA HIM,....

Frankly,... the elephant in the room is the MYR,... there are some events suggesting the MYR may weaken further come September,...

Jut like the OS, China can always design another 'Google-like app' if it's really necessary,...

China kust needs to weaken its currency to match the US,...

Let's see,...

I read that some products have been removed from the latest tariff initiative,... others, mainly 'Christmas season' products have been delayed. Let's see if the US delays those products again,.. or if there is another 'trick' that they can do to reverse, and at the same time, save their faces too !

Whatever it is,... I suspect the Dec 15th tariff is already priced-in to asset prices already,...it could be a non-event after all when December comes,...

The 'Belt-and-Road' Initiative will bring The Middle Kingdom back to the world,... to world supremacy, but not with ideals of colonisation,... anyway, there's no point discussing all these,.. it's all purely academic,... only time will tell.

Trump may not win the next elections,...

Haha,... on this early morning, I will point out your ignorance and your innocence in thinking,...

The 'Belt-and-Road' initiative is the FIRST step towards extending influence into the countries. There is no better way to convincing a community than to help build infrastructures to make their lives better and to develop their economy. With a convinced people, other initiatives can follow-through,...

There is one more way - extending military protection.

SO,... think first before you speak,... but then yeah, you managed to extract this idea from me,.. you are good too,...

At other times, I will just keep quiet when you ask questions, or when you state something,...

Yes bro,... a game-changer indeed,.. it's good to help people of the world if we can afford it !

Bro,.. actually,.. Chinese gov't never really forced any ctry to pay,... if can pay,... then pay, if can't,.. can take time to decide what to do next,... no forcing,.. no saying must let them have a naval base onshore, no saying must send troops to fight,...

Now,.. I'm confused,.. see the below, bros,..

https://www.thestar.com.my/business/busines...pening#cxrecs_s

Para two is : A dealer said the US dollar headed south ahead of central bankers meeting in Jackson Hole this Friday, where the US Federal Reserve is anticipated to give clues on potential interest rate hike.

Read more at https://www.thestar.com.my/business/busines...ofLt2LQkuVsc.99

Why potential interest rate HIKE ??????????????????

Yeah,... but Feds shouldn't be thinking of hiking yet, right > Everywhere reads cutting,... this Star article read hiking,...

Typo error ??