Published Tue, 11 Jun 2019 06:45:00 -0400 on Seeking Alpha
Last week we touched on the stark difference between high-yield, high-risk REITs and low-yield, lower-risk REITs and compared some of the underlying holdings of two ETFs. The question of whether to play it safe or not, really depends on each investor's preference, but that article focused primarily on equity REITs, a sector that we are neutral on based on valuations and one which investors have shown a heightened level of interest in. In a previous article, The Belgian Dentist shines a light on the bullish sentiment toward REITs and how extreme levels of sentiment can be a strong contrarian signal.
Now that the yield curve is inverted or at least flirting with inversion, depending on which part of the yield curve you consider, the prospect of lower rates has increased. It seems only a month ago - maybe two - that we were looking at investment options for rising rates. As confusing as that might be and as whip-sawed as we might feel as investors, we need to be aware of the best opportunities to invest in if the yield curve stays inverted and a rate cut happens.
Income Strategies For An Inverted Yield Curve
The yield curve on US Treasuries recently inverted again and once again talks about an imminent recession have started. Some economists will tell you that an inverted yield curve has preceded every one of the past seven recessions and that's certainly true. But the yield curve also has been inverted on several occasions that were not followed by a recession. "This... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|ANNALY CAPITAL MANAGEMENT||8.60||0.0||-3.32||1.20||14.00|
|ISHARES FTSE NAREIT MORTG PLUS CAPPED INDEX FUND||41.97||0.0||0.00||0.00||0.00|
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