It’s fascinating how rapidly the landscape shifts.
Just a mere three months ago, we were talking about the prospect of interest rates taking a nosedive.
But now, there’s growing concern that the policy directions under the new Donald Trump administration might steer us into an inflationary storm.
To add to these challenges, the recent remarks from the Chairman of the US Federal Reserve suggest there might be a halt on interest rate reductions.
The Chairman mentioned, "The economy isn’t giving us any indication that we need to rush to lower rates."
Now, the pressing question is: What does all this mean for investors in Singapore?
Reflecting back, we saw the impact on real estate investment trusts (REITs) when interest rates were hiked in 2021.
This brings us to a critical consideration—if interest rates stay elevated, do REITs remain a worthwhile investment?
Capable REITs can navigate this challenge
“Interest rates are to asset prices, you know, sort of like gravity is to an apple,” as Warren Buffet shared at the 2013 Berkshire Hathaway Annual General Meeting.
The prolonged period of high-interest rates has certainly cast a shadow over…
