Where Do We Stand In Anticipation Of The Fed’s Potential Interest Rate Hike? by Heli Brecailo, Gilverbook.com Clients have asked why there’s so much coverage of the Fed’s upcoming interest rate in the
Sourced through Scoop.it from: www.valuewalk.com
The US economy is growing, but since inflation is very low and recruitment hasn’t picked back up, it doesn’t feel like we have the right ingredients for an interest rate hike. And right now, there aren’t any strong signs that’ll change soon.
The August selloff works against arguments for the interest rate hike. Rather than fueling the fire, Fed authorities would potentially wait until the dust settles and make a decision when the horizon is clearer. In the end, the Fed doesn’t want to disrupt the financial markets even further and be blamed for a period of panic.
In regards to the stocks we follow, Real Estate Investment Trusts (REITs) were hurt by the selloff like the rest of the market. Indeed, markets have been quite volatile, and REITs have been affected as much or sometimes more. However, we do not see in the real markets what we do in the financial ones. REIT stocks in general have been fundamentally sound, continuing to distribute dividends.