$Suntec Reit(T82U.SG)
The Context: The prices of reits have come under pressure the past few days due to increased probability of a rate hike. Some of my friends saw it as an opportunity to buy at a more attractive price and dividend yield while others are adopting a wait-and-see approach. However, I just read news that Governor Waller’s speech caused the 10-year Treasury bond yield to plunge as the market interpreted it as support for maintaining the interest rate so the reit prices may recover tomorrow.
My Trade: Nothing.
Takeaway: News can have pronounced short-term impact on stock prices but expectations can change quickly. If your convictions and the long term fundamentals haven’t changed drastically, there is no need to panic.
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