Why Interest Rates Are Driving Real Estate Higher — and How to Play It
Industrials, basic Materials and Financials sector names are taking a breather as there's been a slight shift in the leaders. The Real Estate sector still looks strong. Low interest rates are good for real estate, and I’ve identified two plays to take advantage of today’s climate — and more in today’s stock market recap.
But first…
Stock Market Recap
In the stock market recap, global stocks are mostly higher today despite hot inflationary data on Thursday.
The bond market continues to move higher and it could hit its 200-day moving average. A rise in inflationary pressure and interest rates is likely before the end of the summer. Stocks rose and bond yields fell after consumer prices increased 5% in May. This was the biggest year-over-year rise in 13 years. Rental car companies helped bolster consumer prices by expanding their fleets in anticipation of a busy summer.
The Group of Seven summit will meet in Britain to discuss aid to countries around the world still struggling with the COVID-19 pandemic.
Wall Street eagerly awaits for next week’s quarterly Federal Open Market Committee (FOMC) meeting. The Fed will present its economic and interest rate policy on Wednesday, June 16. Investors hope for a stable economic reading from the committee with no plans to change current monetary policy.
Roger’s Radar: 2 Plays in a Thriving Sector
Gaming & Leisure Properties Inc. (Nasdaq: GLPI) is a Real Estate Investment Trust (REIT) focused on financing and leasing properties to gaming operators. GLPI had a one-day pull back Thursday after a multi-month upward trend.
If GLPI can fill the gap from its pullback, there’s a good chance it can break above its previous high. These gaps are good opportunities for stocks with similar setups.
The second play I’ve identified for today is another REIT operating single-family residential units. It’s on a solid three-month upward trend and has a one-year return of 37.70%.
In today’s video, you’ll learn which sectors are sensitive to interest rates moving higher… which sectors are prone to upside gains… and the top 2 plays I’m targeting right now.
P.S. Legendary trader Tom Busby just discovered something shocking about the stock market…
He found a little-known pattern that occurs every Tuesday at 9:30 a.m. as the market opens. And traders who catch onto it could find themselves in the driver’s seat for the easiest four-day gains they’ve ever seen.
Tom kept this strategy to himself for a year...
But now that he’s been able to prove his theory on real-money trades with gains like 90% on RIOT and 122% on MRNA, he’s ready to go public with it.
And retail investors stand to benefit most!
