Real Estate Investor Magazine South Africa June 2015 | Page 63

FOREIGN

The Market’s Obsession With Rising Interest Rates

Interest Rates To Rise In The United States

BY WIM PRINSLOO

T

he stock market and its participants have a tendency
to become overly obsessed
with specific events.

Importantly, investors who were
caught up in the noise and never reentered the REIT market lost out
on a further 15.84% return.

Rising interest rates
A good example of a current
market obsession is the negative
impact that rising interest rates
will have on the global Real Estate
Investment Trust (REIT) market.
The perception has been created
that REITs perform poorly in a
rising interest rate environment.
However, a glance in the rear-view
mirror shows that rising interest
rates are not an impediment for
REITs to generate good returns
for their shareholders. The six )