Clubbed By The Fed? REITs, Like The S&P 500 Index, Are Getting Clubbed By The Fed’s Rate Hike Expectations

As The Federal Reserve seems hellbent on raising interest rates to fight the rapid increases caused by Biden’s follicies, we see the S&P 500 index taking a hit in 2022, but NAREIT’s all equity index as well.

An example of how a REIT can be impacted by The Fed is the Industrial REIT index that tanked with Amazon’s declining earnings prospects.

While industrial REITs is a broad category, Amazon’s crashing EPS has certainly shocked the market.

Retail REITs? How about Simon Properties? Simon Properties, a large mall REIT, go “Fauci’d” as the Covid economic shutdown really caused pain for shopping malls. Simon’s occupancy rate has increased as the economy opens back up (we hope).

Meanwhile, Simon Properties equity has declined along with the S&P 500 index as The Fed raises rates. In other words, both the S&P 500 and shopping mall REITs are getting “Fauci’d” by The Fed. Or Powell’d.

Clubbed by The Fed.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.