Overall, Reits listed in SGX have performed well in view of the coming rate cut. Today, I want to look at the US office reits in particular, as they have been beaten badly due to low occupancy rate since Covid, and the property valuation affected by the high interest rate environment.
Prime US REIT (SGX:OXMU) (PRIME)
1. Turn long (arrow) with surge in volume
2. And this candle closed up the gap down on the left
3. Price close above 20ma
Federal Reserve Chairman Jerome Powell signalled on Wednesday that a rate cut could happen in September, as long as there is no major change or upset from the economic data. Given this confidence, market is shifting to long term US Treasury bonds and Reits.
And on Friday, US market tumbled on fear of possible recession and some reports are also expecting a bigger rate cut coming September.
Fortunately, a few months ago when the S&P500 and QQQ indexes were performing extremely well, and as part of re-balancing, I have sold off some and move them in tranches into the Bond etfs.