With the Federal Reserve set to announce its latest interest-rate decision tomorrow afternoon, we’re left staring down the possibility of a rate hike … and what that could mean for real estate.
Previously lumped in with financials, REITs will soon have their own sector on the S&P 500. And the added liquidity should open the floodgates for new cash to flow into real estate.
Ultralow interest rates, if kept around long enough, are going to result in distortions in capital markets … and you need look no further than the housing market for proof.
If you cashed out your real estate holdings in 2006, many — wrongly — would have called you crazy. One billionaire did just that, making his activity in today’s real estate market all the more ominous.
Leading indicators for the housing sector are raising warning flags, but you can use these forward-looking data to make one simple trade to take advantage of the situation.
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