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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks
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To: Cogito Ergo Sum who wrote (1862)11/9/2001 2:42:14 PM
From: stan_hughes  Read Replies (1) of 11633
 
Kastel et al - Keep your eyes peeled for deflation with those REITS. Commodity prices are still dropping, but real estate is holding the fort principally because of lower interest rates and the lack of suitable alternative investments.

However, we're running out of room for rates to fall much further, removing some of the demand push for R/E right at the same time as the onset of the recession starts pushing up vacancy rates and credit problems.

If Greenspan successfully spends his way out of this mess, you might be sitting pretty in an inflationary environment a year from now. OTOH if all this monetary stimuli doesn't work and work quickly, R/E may do very poorly as the major global economies keep contracting.

Just ask someone who entered the Japanese R/E market 10 years ago how they've been doing for the past decade. Veddy oogly. Not saying that we are Japan, but if you enter the REITs now, you need to be prepared to cope with that possibility.
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