Equities are more volatile than ever as macroeconomic headwinds pile on. The recent data revealing slowing economic activity in China has raised major concerns regarding a global economic slowdown, as China is the manufacturing hub of the world. The major U.S. benchmark indexes are currently down more than 13% year to date.
As the Fed gears up to execute another 75 basis point rate hike this month, the real estate market is expected to remain strong. The rising federal funds' rates are likely to spill over to mortgage rates, meaning that interest income for most real estate investment trusts (REITs) is poised to rise in the upcoming months. This trend should boost their dividend yields as well, as REITs are required to distribute at least 90% of their taxable earnings to shareholders through dividend payouts.
