VICI - Trump Rate Cuts? A Handful Of Stocks With Possible Convexity
2024-07-03 02:34:49 ET
Summary
- Common stocks with owner earnings exceeding the risk-free rate are attractive investments in a rate cutting environment.
- REITs with covered yields and FFO higher than risk-free rate offer a possible convexity on par with bonds.
- The 2024 election seems to have swung in favor of a second Donald Trump Presidency after the first presidential debate, which could entail more rate cuts than anticipated in 2025.
Elections can have consequences when it comes to rates
After watching last Thursday's presidential debate, many thoughts circulated both traditional and social media. Some of the thoughts were polite and some were not so polite. Being the apolitical stoic that I am, I'll spare my thoughts and just say that the odds of Donald Trump becoming the next Grover Cleveland have increased. ...
Trump Rate Cuts? A Handful Of Stocks With Possible Convexity