Interest Rate Cuts: Time to Ditch Banks for REITs?

The U.S. Fed is widely anticipated to cut interest rates following their September meeting, although this has yet to be confirmed. How might a potential rate cut influence your portfolio and near-term investment decisions? How will bank stocks be affected? Is it time to consider rotating your exposure from banks to REITs? We discuss all this and more in our latest roundtable.

00:00 Intro
02:19 Effect of rate cuts
05:39 Singapore REITs
13:12 Singapore banks

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[MrBoliao]

With the number of people refinancing, you think the bank will be out of business?

[Lucas-wnwm]

Im still staying away from office spaces reits. Just sticking to datacenters and logistics reits

[vergelangeloreyta]

thank you for another insightful discussion! you guys are the best! :)

[bhtansg]

Good discussion, thanks!. If you take a look at the performance charts of S-REITS vs S-Banks, am I the only one that is seeing that over time Banks are on an upward trend (sure there is up and down noise but the upward trend is unmistakable) whereas the S-REITS chart shows a flattish line. REITS pays 90% earnings as dividends and always issue new units for asset acquisition like the current exercise by CICT. If you do not participate in the preferential offer, your holdings get diluted. So this is something I do not like about REITS. On the other hand banks retain 50% of earnings to add to its capital to make more business and hence over time the banks become more valuable - hence this partly explains the upward trend in the performance of the banks. I have both reits and banks, they are a good hedge.

[Trendy_Content_Hub]

What happens if rate cut is 25 bps if stocks rise or people expect 50 bps if 25 bps made stock market correction reply me