During the last financial crisis in 2008, central banks from all around the world scramble to reduce interest rate via qualitative easing in a bid to stimulate growth.
With a low interest rate environment, the Reit sector will attract investor and do well because it gave out good dividend which is higher than the prevailing interest rate.
Today, with the US unwinding their qualitative easing program and the EU and Japan following suit, global interest rate will go up and Reit will longer be an attractive instrument for investment.
Hence, from now on, I am looking to short Reit whenever I see an opportunity.
Tomorrow I will be looking at Suntec Reit.