With the war in the Middle East and oil prices climbing, it looks less likely that the Fed will cut rates anytime soon. But it’s not always going to be like this forever. Once tensions ease and the balance of risks shifts from inflation to something a little more “normal”, rate cuts may become more likely.
If and when that shift happens, borrowing becomes easier, and money cycles out of some sectors into others. One of the biggest beneficiaries of that kind of change is real estate, and REITs look more attractive.
