Neutral pattern.
A rectangle is a horizontal trading channel that binds price action.
In order to grow, REITs need to raise external debt and equity capital from investors. As a result, higher interest rates increase a REIT's cost of debt and make it incrementally harder to achieve profitable growth.
During periods of economic growth, REIT prices tend to rise along with interest rates. The reason is that a growing economy increases the value of REITs because the value of their underlying real estate assets increases. In a growing economy, the demand for financing also increases, resulting in increased interest rates. Conversely, in a slowing economy, when the Fed is tightening money, the relationship turns negative.
No recommendation
A rectangle is a horizontal trading channel that binds price action.
In order to grow, REITs need to raise external debt and equity capital from investors. As a result, higher interest rates increase a REIT's cost of debt and make it incrementally harder to achieve profitable growth.
During periods of economic growth, REIT prices tend to rise along with interest rates. The reason is that a growing economy increases the value of REITs because the value of their underlying real estate assets increases. In a growing economy, the demand for financing also increases, resulting in increased interest rates. Conversely, in a slowing economy, when the Fed is tightening money, the relationship turns negative.
No recommendation
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.