ICYMI bonds have nose-dived since late September, bringing REITs down with them. Granted both were already on a downtrend but the sell-off just accelerated.
Not sure about you but I’ve been waiting for an opportunity to add to my bonds and REITs more substantially. So far, I’ve only added or trimmed small quantities to rebalance the portfolio.
Given also that stocks have run up a lot, so our portfolio is overweight equity and underweight bonds and REITs (I consider both quite similar and correlated).
REITs follow bonds to a certain extent because as bond prices drop (and correspondingly bond yields rise), that increases the floating interest rates on their bank loans. Then when REITs drop, in turn their distribution yields also increase (if they can sustain them).
Today, U.S. 10Y Treasury yield is 5.22%, Syfe REIT+ estimated dividend yield is 6.2%, and Singapore Savings Bond (SSB) 10Y average yield has
…
