iREIT Daily

“China’s Intervention Sends Stocks Soaring”

Brad Thomas

467 postsMarch 17, 2022

“China’s Intervention Sends Stocks Soaring. Powell’s Unlikely to Make That Big a Splash,” Barron’s declared yesterday morning three hours before the opening bell.

And then, an hour and a half after the closing bell, The Wall Street Journal published this: “China Shares Soar After Beijing Signals Support; Alibaba Jumps 37%.”

As some of you may know, Chinese stocks weren’t faring well for a bit there. And earlier this week was especially rough. To quote the Journal:

Investors are concerned about a range of issues, including U.S. delistings, tensions with the U.S., China’s intensifying battle with Covid-19, and Beijing’s long-running series of regulatory crackdowns.

Yet apparently all they needed was some nice words of reassurance from the country in question. The result was “Hong Kong’s main benchmark staging its biggest single-day rally since the global financial crisis.”

In case you did what I did and misread that the first time around, that’s not referring to the 2000 shutdowns. That’s as far back as 2008.

So what exactly did Beijing do to cause such a rally – both there and elsewhere, including in the U.S. –especially with tech stocks like Alibaba (BABA)?

Among other things, Chinese officials said they would introduce market-friendly policies and keep the capital market running smoothly, said Xinhua, China’s state news agency. Participants at a meeting chaired by Mr. Liu also said any policy that could move markets should be developed in coordination with financial regulators, Xinhua reported.

As for the other part of that Barron’s headline – the second half that diminished the Fed’s influence – that’s a bit trickier. Because the Fed has massive influence over the U.S. and other markets. Yet…

I would agree that could very well be waning.

More Non-REIT News You Need to Know About

The current market situation is complex regardless. It’s really only safe to say that investors are acting off momentary emotions instead of long-term mindsets.

Consider yesterday’s action, as summarized by Yahoo Finance:

Stocks rose Wednesday afternoon as traders considered the Federal Reserve’s latest monetary policy decision, in which the central bank hiked interest rates for the first time since 2018 in a move matching market expectations.

This implies that the major indices’ bullish morning moves were all due to China’s influence. Yet we also want to consider this:

The S&P 500, Dow, and Nasdaq rebounded in the final 30 minutes of trading after declining in the immediate aftermath of the Fed’s latest policy decision released at 2 p.m. ET. Treasury yields built on earlier gains. The yield curve inverted at one point as the yield on the shorter-duration and more policy-sensitive [five-year] note jumped above that on the 10-year note.

That’s a very mild summary for this kind of S&P 500 activity:

(Source: CNBC)

The Dow even went red for a moment before everything shot right back up. So it seems safe to say the Fed did influence the markets after all – despite doing nothing unexpected.

I do also want to mention the enormously overlooked news that Saudi Arabia is considering ditching the so-called petrodollar. Maybe not altogether at first, but a Saudi official reportedly told the Journalthat:

The dynamics have dramatically changed. The U.S. relationship with the Saudis has changed. China is the world’s biggest crude importer, and they are offering many lucrative incentives to the kingdom… China has been offering everything you could possibly imagine to the kingdom.

If that deal goes through, the repercussions would be intense, to say the least. And we have to acknowledge it as a factor behind China’s rally yesterday already.

The World According to REITs

Moving right along to the so-often comforting real estate investment trust (REIT) sector, here are your three updates for today:

Retail Value (RVI) announced it can move forward with its previously announced sale of Crossroads Center in Gulfport, Mississippi, for $38.5 million. If/when that deal closes, RVI will then voluntarily delist from the New York Stock Exchange early next month. Where it will go from there is currently unknown.
Medical Properties Trust (MPW) finalized its partnership with Macquarie Infrastructure Partners V. The private fund will now hold a 50% interest in eight of MPW’s Massachusetts-based general acute care hospitals. All eight are operated by Steward Health Care System.
DiamondRock Hospitality (DRH) debuted Hotel Clio in the Denver, Colorado-area’s Cherry Creek. This is its third Luxury Collection asset now.

Oh, and before I move on to the graphic below, I want to make sure to say a giant happy St. Patrick’s Day! Here’s hoping it’s so much more than lucky for you all…

And definitely filled with green.

(Source: The Daily REITBeat)

Happy Investing

Brad Thomas

467 posts

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Brad Thomas is Senior Research Analyst at iREIT and CEO of Wide Moat Research LLC. With over 30 years of real estate experience, he is also long-time Editor of Forbes Real Estate Investor, a monthly subscription-based newsletter that dives deep into the vast world of profitable properties, and since 2021, he has served as an adjunct professor at New York University.

Thomas has also been featured on or in Forbes magazine, Kiplinger's, U.S. News and World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. And he was the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021 based on both page views and number of followers.

Thomas is the recently-published author of The Intelligent REIT Investor Guide (2021), co-author of The Intelligent REIT Investor (2016), and he wrote The Trump Factor: Unlocking The Secrets Behind The Trump Empire (2016) - all available on Amazon.

Thomas received a bachelor of science in business/economics from Presbyterian College and is married with five wonderful kids.

Patience Pays Off (Big Time)

REIT Mutual Fund	Symbol
Alpine Realty Income and Growth Fund	AIGYX, AIAGX
American Century Real Estate Fund	REAIX, REACX, AREEX, AREWX, ARYCX, AREDX
Real Estate Securities Fund	MRESX
AR Capital Real Estate Income Fund	ARIAX, ARICX, ARIPX
AssetMark Real Estate Securities Fund	AFREX
Aston/Harrison Street Real Estate Fund	AARIX, ARFCX
Baron Real Estate Fund	BREIX, BREFX
BlackRock Real Estate Securities	BIREX, BAREX, BCREX
Brookfield U.S. Listed Real Estate Fund	BRUAX, BRUCX, BRUIX, BRUYX
CGM Realty Fund	CGMRX
West Loop Realty Fund	REIIX, REIAX, REICX
Cohen & Steers Institutional Realty Shares	CSRIX
Cohen & Steers Realty Income Fund	CSEIX, CSDIX, CSBIX, CSCIX
Cohen & Steers Realty Shares	CSRSX
Columbia Real Estate Equity Fund	CREAX, CREIX, CRRVX, CRERX, CREEX, CRRFX, CREWX, CRECX, CREBX
Compass EMP REC Enhanced Volatility Weighted Fund	CWRAX, CWRIX, CWRTX, CWRCX
Davis Real Estate Fund	RPFRX, DREYX, DRECX, DREBX
Delaware Real Estate Investment Trust Portfolio II	DPRTX, DPRBX
Delaware Real Estate Investment Trust Portfolio	DPREX, DPRSX, DPRRX, DPRCX
DFA Real Estate Securities Portfolio	DFREX
Dunham Real Estate Stock Fund	DAREX, DNREX, DCREX
DWS RREEF Real Estate Securities Fund	RRRRX, RRREX, RRRAX, RRRSX, RRRBX, RRRCX
DWS RREEF Real Estate Securities Income Fund	REFAX, REFCX, REFIX, REFSX
Eaton Vance Real Estate Fund	EAREX, EIREX
EII Realty Securities Fund	EIIRX
Fidelity Advisor Real Estate Fund	FHEIX, FHEAX, FHETX, FHECX, FHEBX
Fidelity Advisor Real Estate Income Fund	FRIRX, FRIQX, FRINX, FRIOX
Fidelity Real Estate Income Fund	FRIFX
Fidelity Real Estate Investment Portfolio	FRESX
Fidelity Spartan Real Estate Index Fund	FSRNX, FRXIX, FSRVX
Fidelity Series Real Estate Equity Fund	FREDX, FREFX
Fidelity Series Real Estate Income Fund	FSREX, FSRWX
Forward Real Estate Long/Short Fund	KSRYX, FRLSX, FFSRX, KSRAX, KSRCX, KSRBX
Forward Real Estate Fund	FPREX, FFREX, KREAX, KRECX
Forward Select Income Fund	KIFYX, FSIMX, FFSLX, KIFAX, KIFBX, KIFCX
Franklin Real Estate Securities Fund	FREEX, FRLAX, FRRSX, FSERX
GMO Real Estate Fund	GMORX
Goldman Sachs Real Estate Securities Fund	GREIX, GRETX, GREAX, GRESX, GRERX, GREBX, GRECX
Great-West Real Estate Fund	MXREX
Heitman REIT Fund	OARTX, OBRTX
ING Real Estate Fund	CRARX, IREWX, IDROX, CLARX, CRWRX, CRCRX, CRBCX
INVESCO Real Estate Fund	REINX, IARFX, IARIX, IARYX, IARAX, IARRX, IARCX, AARBX
Ivy Real Estate Securities Fund	IRSAX, IREIX, IRSYX, IRSRX, IREEX, IRSCX, IRSBX
John Hancock Real Estate Securities Fund	JIREX
Johnson Realty Fund	JRLTX
J.P.Morgan Realty Income Fund	URTLX, JRIRX, URTAX, URTBX, URTCX
J.P. Morgan Security Capital U.S. Core Real Estate Securities Fund	CEEAX, CEERX, CEEFX, CEESX, CEECX
J.P. Morgan U.S. Real Estate Fund	SUSIX
Lazard U.S. Realty Equity Portfolio	LREIX, LREOX
Lazard U.S. Realty Income Portfolio	LRIIX, LRIOX
Manning & Napier Real Estate Series	MNRIX, MNREX
Morgan Stanley Institutional U.S. Real Estate Portfolio	MSUSX, MUSDX, MSULX, MURSX
Natixis AEW Real Estate Fund	NRFAX, NRFYX, NRFBX, NRFCX, NRFNX
Neuberger Berman Real Estate Fund	NBRIX, NBRFX, NREAX, NRERX, NRECX, NRREX
Nuveen Real Estate Securities Fund	FREAX, FARCX, FRSSX, FREBX, FRLCX, FREGX
Oppenheimer Real Estate Fund	OREAX, OREIX, OREYX, ORENX, OREBX, ORECX
PHOCAS Real Estate Fund	PHREX
PIMCO RealEstateRealReturn Strategy Fund	PRRSX, PETPX, PETAX, PETDX, PETCX, PETBX
Pioneer Real Estate Shares	PWREX, PYREX, PCREX, PBREX
Principal Real Estate Securities Fund	PIREX, PIRPX, PREPX, PRETX, PREJX, PRRAX, PRERX, PRENX, PRAEX, PRCEX, PRLEX
ProFunds Real Estate UltraSector ProFund	REPIX
Prudential Select Real Estate Fund	SREAX
Prudential U.S. Real Estate Fund	PJEAX, PJEZX, PJECX, PJEBX
REMS Real Estate Income 50/50 Portfolio	RREIX
REMS Real Estate Value-Opportunity Fund	HLRRX, HLPPX
Rydex Real Estate Fund	RYREX, RYHRX, RYCRX
SA Real Estate Securities Fund	SAREX
SEI Institutional Mgd Real Estate Fund	SETAX, SEIRX
Spirit of America Real Estate Income & Growth Fund	SOAAX
SSgA Clarion Real Estate Fund	SSREX
Stratton Real Estate Fund	STMDX
T.Rowe Price Real Estate Fund	TRREX, PAREX
TIAA-CREF Real Estate Securities Fund	TIREX, TRRPX, TRRSX, TCREX
Vanguard REIT Index Fund	VGSNX, VGRSX, VGSLX, VGSIX
Virtus Real Estate Securities Fund	PHRAX, PHRIX, PHRCX, PHRBX

REIT ETF	Symbol
Flex Shares	ASET
Wisdom Tree Global Ex-US	DRW
S&P 500 Equal Weight	EWRE
iShares FTSE Industrial/Office	FNIO
MSCI Real Estate Index	FREL
S&P REIT Index	FRI
First Trust S&P REIT	FRI
iShares Real Estate 50	FTY
Flexshares Global	GQRE
iShares Cohen & Streers	ICF
iShares International Developed RE	IFGL
iShares US RE	IYR
Premium Yield Equity REIT	KBWY
ETRACS Monthly Pay 2x Leverage	MORL
Market Vector Mortgage	MORT
iShares Global REIT	REET
iShares FTSE Mortgage	REM
iShares Residential	REZ
IQ US Real Estate Small Cap	ROOF
iShares FTSE NAREIT Retail	RTL
DOW Jones Global RE	RWO
SPDR Dow Jones	RWR
Schwab US REIT	SCHH
Super Dividend REIT	SRET
ProShares Ultra RE	URE
Vanguard REIT	VNQ
Vanguard Global ex-US	VNQI
iShares International Developed	WPS
Wilshire US REIT	WREI
Pacer Benchmark Data & Infrastructure RE	SRVR
Pacer Benchmark Industrial RE	INDS
Pacer Benchmark Retail RE	RTL
Hoya Capital Housing	HOMZ
NetLease Corporate RE	NETL

REIT Name	Ticker	Annual Increases/yr
Federal Realty	FRT	51
Universal Health Realty	UHT	33
National Retail Properties	NNN	29
Realty Income	O	27
Tanger Outlets	SKT	26
Urstadt Biddle	UBA	25
Essex Property Trust	ESS	25
W.P.Carey	WPC	22
National Health Investors	NHI	17
Equity Lifestyle	ELS	15
Digital Realty	DLR	15

“China’s Intervention Sends Stocks Soaring”

Brad Thomas

467 postsMarch 17, 2022

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“China’s Intervention Sends Stocks Soaring”

467 postsMarch 17, 2022

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