Whipsawing between sentiment and rates

Economic strength indicators ranging from strong Black Friday results to steady jobs data are bullish for REITs as it improves the underlying fundamentals.  However, this exact same data portends a greater likelihood of a Fed rate hike and perhaps a more rapid trajectory for future hikes which is bearish for REITs.

Rather than weighing this information and deciding it cancels out, the market overly focused on the bad for parts of the week and the good on other days causing a whipsaw effect.  Over the entire week REITs closed down 0.69% but it was quite the ride getting there.

We did not sit idly and let these bumps go by unexploited.  Instead, the erratic behavior allowed us to buy GOOD and IRT back, both of which we had previously sold at higher prices.

Commentary may contain forward looking statements which are by definition uncertain.  We retain no obligation to update or correct forward looking statements should the available information change.  Actual results may differ materially from our forecasts or estimations.

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