Low interest rates can act as a lever to enable investors to buy assets during a recession. Low interest rates can help to start a stock market or real estate market boom. So it is tempting to think that this is the time to buy a REIT, but that is wrong. The ideal time to buy assets is not when financing is chap, rather one should buy when financing is expensive because then the price will have been reduced because higher interest rates make assets less affordable.
The Fed’s low interest rates are short term and are not locked in …Read More