A Lower Rate Environment

Every central banker in the world seems to be in a rush to cut their interest rates. They're calling these 'insurance cuts' as protection against a possible slow down in growth.

Makes no sense

The idea that these interest rate cuts are going to protect the economy doesn't make much sense to me. The main drivers are fiscal policy and trade policy. Monetary policy will not cure what ails the economy nor will it provide much relief.

And probably most importantly, with rates near all time lows, what will happen when the economy does eventually take a down turn? There will be no rates left to cut.

Sector that could benefit

One sector that i like in these low interest rate times is the REIT sector. Interest rate payments form the bulk of outflows for many REITs and with lower interest rates, they will have more money on hand to invest in property, bid for assets and also to increase their payout.

A couple on my radar are Capitamalls and Parkway Life. A more detailed analysis in a future post.