REITs have been undergoing significant selling for months due to the persistent high-interest-rate environment. At this time, it seems likely that the Fed will continue to manage expectations around rate cuts to avoid crashing the market. With inflation still at 3.4%, it's evident that the rate remains too high. I've been considering whether the Fed would cut rates if the US enters a recession. The probable answer is no, which is on way to stagflation—a scenario where both inflation and unemployment are high, putting us at a disadvantage.
A one percent increase in the inflation rate over the long term can significantly impact savings or retirement sufficiency, as purchasing power will be reduced. Poor or average savers will bear the brunt of this impact. We've likely reached a stage where we must endure this path and minimize the pain of the journey, as the alternative could be far more damaging. The mitigation plan continues to involve using banks to hedge against inflation as above table shown.
To summarize, for the first half of 2024, the result stands at $34,712, bringing the cumulative total to $616k. It's likely that dividends collected for the year will be similar to those of 2023. This is because large funds have been diverted to SSB (Singapore Savings Bonds) and T-Bills, which aren't tracked in these returns, and a sizeable portion has been allocated to the US market, which has low or zero yields.
Cory Diary
2024-06-29
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Disclaimer: The articles presented in this blog reflect personal opinions and are intended for informational and sharing purposes only. Not responsible of errors. Readers are advised to seek professional guidance when making financial decisions and should take full responsibility for their choices.
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