Neo,

You got 50k in REiT. No need wait till gaji day lar,

Hi Cherroy,

Kindly if you could explain why the FD rate can affect the price of REIT ? I understand above the rules of relationship between Bond & FD .. but this REIT is totally new to me.

Thanks

Hi Cherroy,

I assume you are right because I've found out that their prices are kind of stable. It is hardly moving at all most of the time. I believe the reason might be due to their stable dividen and less plunge in their stock price (defensive stock). Investor could predict the future earnings and dividens if there is no major cycle of changes in the economies.

Well, my question is .. what could happen to the REIT if our economy have slow down to recession stage? The property industry will not able to perform due to financing problems. Investor guru have recommended REIT as part of diversifying from the equity stock markets.

But, the current economy condition in US would have doubt me about the statement above. Subprime in housing loans have bring down the economy at a whole. It might be a bargain time for the REIT companies to go all out now and make some purchases if they have strong cash-flows and finances. (Cash is the King, no doubt)

So, can you recommend on the REIT industry, their directions in term of pricing and dividen yield .. when the market start to decline.

STAREIT is in heavy volume trade today. A bit unusual, it could signal a trade buy.

at RM1.00, you never know is it going to move up further or slipping further down. Therefore, you divide out your bullet and purchase in phase.