$Suntec Reit(T82U.SG)
The Context:
The prices of reits have come under pressure lately due to the increased probability of a rate hike. Some of my friends saw it as an opportunity to buy at a more attractive price and dividend yield while others are adopting a wait-and-see approach. Then the yield of the 10-year Treasury fell in reponse to Governor Waller’s speech which was interpreted by the market as support for maintaining the interest rate in September but this is contingent on the inflation data showing signs of deflation.
Subsequently, the August job data report showed a stronger than expected figure for non-farm payroll jobs which made the yield go up.
My Trade: Maintain while watching for an opportunity to add more.
Takeaway: News can have a pronounced short-term impact on stock prices but expectations can change quickly. For long term value investors, if the convictions and fundamentals haven’t changed drastically, there is no need to panic and do reactive trades.
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