Defensive Stocks, REITS and Trusts Series:
AIMSAMP Cap Reit, 17 March 2018, 9.59pm Singapore Time
(Click on Technical Chart above to Expand)
Attached is the continuation of the Defensive Stocks, REITS and Trusts Series which I had previously covered. Today, we shall cover AIMSAMP Cap Reit -- another defensive equities, reits or trust group of stocks that are expected to wither under the rising rates environment because rising interest rate yields will draw the blood out of these group of stocks. The OBV and the Force Index are glaring red flags now for these groups of stocks worldwide. AIMSAMP Cap Reit is just another classic example. While prices remain high, the monies are getting out fast like avoidance of plague. This is possible because fools' monies are in, while smart monies are out.
Keynote of DNA:
In rising interest rates environment, defensive stocks, reits and trusts lose their shine. Interest rates close up the gap between interest yields and dividend yields and cause selling pressure on these kind of asset classes. Other asset classes offered by banks and insurance companies will offer much better shine for the high yields and lower risks in rising rates environment (hence, Banks and Insurance Companies to benefit greatly). Cyclical stocks are often favoured in rising rates environment.
Previous Defensive Stocks, REITS and Trusts Series of Analyses:
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