The analysts view this “small pivot” by the Fed to be a significant guidance, opening the door to a downshift in hikes in 2HFY2022 ending December.
DBS Group Research analysts Geraldine Wong, Derek Tan, Rachel Tan and Dale Lai are optimistic on the Singapore REITs (S-REITs) sector. This is in light of having much economic tumult blown over for the sector, as the Fed hike momentum tapers and inflation levels wane, the analysts write in their Aug 1 report.
The Fed has hiked by 75 basis points (bps) which resulted in a strong rally in the US indices. In addition, guidelines on forward hikes appear to suggest a slowdown in the pace of rate hikes.
