The premise for this REIT appreciation seen in the Singapore stock market has been this global cheap money search for a safe yield.
These REITs are the most visible out of the Singapore stocks.
If you have chased these REITs up with only analyzing the REIT fundamentals and the yield and not thinking about the price you pay for them, you may be left with holding these assets at this price for a prolong period.
Think about this, absence of this cheap fund flows, what would cause your REITs to go back to that price.
REITs are not bad investments, but in all assets there is always the evaluation of price and value.
The IPAD is a great product but if you purchase it at $3,000, would that be great value?
In the four years through 2012, investors poured $3.9 trillion into emerging markets, outstripping the $3.1 trillion they added in the same period leading up to the global financial crisis, said SLJ Macro’s Jen, citing data from Institute for International Finance Inc.
In another sign international investor appetite is waning, South Korea raised less than a 10th of the amount planned in an auction of inflation-linked bonds today. The Finance Ministry sold 55.6 billion won ($49 million) of 10-year linkers, having offered 600 billion won, according to its website.
International investors have less incentive to provide that cash while rates at home are rising. The yield on the benchmark 10-year U.S. Treasury (USGG10YR) note jumped to 2.47 percent, the highest since August 2011.