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Strategies & Market Trends : Have REITs begun a rebound 9/16/98 ???

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To: George T. March who wrote (37)10/30/1998 9:07:00 AM
From: gregor  Read Replies (1) of 45
 
Hi George :
I cannot remember which one but there was a shopping center REIT that blew out estimates on CNBC this morning. The GDP numbers this morning were above estimates for the third qtr. The reason I bring this up is because of the relationship between REIT's and inflation. I know this is the furthest thing from investors minds these days but how do REIT's do in inflationary times ? The earnings would be diluted but the underlying property values would increase. There has been a lot of discussion on gold threads about central banks keeping the lid on p.o.g. under 300.00; but if there is any whiff of inflation we could see a nice pop in the REIT sector.

I am not expecting the feds to forstall the next rate cut because of the GDP number today 3.3%. The wage number the other day is a more important number and that was in line with expectations. If we are going to pull the rest of the world out of recession we will see 4 to 5 % GDP growth before this is over...gregor
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