$Suntec Reit(T82U.SG)
The Context: The price today has dropped to 1.49 which is a somewhat bearish sign as it is more than 50% pullback from the recent high of 1.58. The just released personal consumption expenditure price index for July is 3.7%, higher than 3.6% in June when the target is 2% so the probability of a rate hike in September has increased from 36% to 44%. This may put some pressure on reit prices in the near term but I think the rate may be kept the same since the US is also trying to balance the cost of servicing its 40-trillion-dollar debt.
My Trade: Continue to hold.
Takeaway: Expectations of interest rate changes can affect the stock price in the short term but if the fundamentals have not changed drastically, there is no need to sell.
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