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02-23-2017, 09:13 AM #1
Will CRE be Safe with Rising Rates
How many of you are invested in REITs? Now that the Fed seems to be promising aggressive rate hikes for 2017, what did you think will happen to the sector?
I cannot imagine that commercial real estate will be immune to higher credit costs and discount rates.
But maybe it is just one of those things, and I will need to ride the cycle out.
What do you think?
02-23-2017, 12:45 PM #2
I'm interested to see what people have to say on this. I actually know some folks who argue REITs should replace bonds in your portfolio. Despite the fact that history shows that REITs fairly well correlate to the S&P 500, not to bonds.
02-24-2017, 01:54 PM #3
02-24-2017, 03:42 PM #4
02-24-2017, 07:44 PM #5
Everything is safe. The Fed won't let any prices fall.
03-06-2017, 08:54 AM #6
We're probably going to find out soon what happens to RE when rates rise, as the Fed is expected to raise again on March 15th.
03-09-2017, 03:47 PM #7
If interest rates really do rise, then, yes, CRE will be hard hit.
03-21-2017, 08:41 AM #8
Whoever anyone today says they think the stock markets are too expensive, they then say they want to diversify into real estate with the next breadth.
That alone leads me to believe that RE is overvalued as well. And if it is overvalued and overlevereged, it will be a very tough place in a world of rising rates.