facebookThoughts on having a 1:1 ratio for REITs and local bank stock? ? - Seedly

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Anonymous

18 Apr 2019

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REITs

Thoughts on having a 1:1 ratio for REITs and local bank stock? ?

Discussion (1)

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By 1:1, do you mean price wise or counterwise? (REITs are much more cheaper than bank stocks). Theoretically, REITs will perform well when interest rate is low since cost of borrowing for investments is lower and banks worse since revenue from interest is lower. Likewise for the reverse. While this may provide a hedge against the differnet economic cycles, it also limits the potential returns one may have during a high/low interest rate environment.

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