Weekly Macro Themes - REITs likely need lower yields to outperform
This week I covered the following topics: $S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $NASDAQ 100(NDX)$ $Invesco QQQ(QQQ)$ $Dow Jones(.DJI)$
1. Global Policy Pulse: The global jog of rate cuts continues to add monetary tailwinds to global growth (and global ex-US equities), albeit a new higher range in inflation likely limits scope for further cuts.
2. US Housing: Remain cautious on the US housing market given high servicing burden for new buyers + multiple headwinds putting pressure on still historically elevated valuations.
3. REITs: There is a potential contrarian case here as positioning remains light, but valuations are mixed; REITs likely need lower yields to outperform (making them a possible defensive play).
4. Frontier Markets: Remain bullish on frontier market equities given strong technicals, monetary tailwinds, and room to run on valuations (and improving outlook for FM FX).
5. Commodity Equities: Remain bullish on improving technicals (+bullish outlook for commodity prices), and reasonable absolute (and cheap relative) valuations.
For whom haven't open CBA can know more from below:
🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly!
Find out more here：
Trade on a Cash Boost Account and enjoy up to 6 months of Commission-Free trading.
💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
