Summary
Phil reviews the PSE REIT watchlist. Despite the theoretical expectation that REITs should benefit from the second half of the cycle, the asset class has been weak due to sensitivity to interest rate rises — funds rotated into government bonds. ASX REITs (Charter Hall, Hotel Property Investments, National Storage) and UK REITs (LXI, SLI delisted; others sideways). US REITs (CyrusOne, Monmouth delisted). Most charts show sideways action — no clear trend. Gann noted stocks spend most of their time going sideways.
Key Claims
- REITs have been weak despite second-half cycle dynamics because of interest rate sensitivity. — confidence: high
- Several REITs (LXI REIT, Standard Life Invest Corp, CyrusOne, Monmouth) have been delisted. — confidence: high
- Most remaining REIT charts show sideways action with no established trend. — confidence: high
- W.D. Gann observed that stocks spend most of their lives going sideways. — confidence: high