- The current trade war if prolonged, could result in a fragmented global economy, severe disruptions in supply chains, and the acceleration of parallel ecosystems, cementing a new era of strategic decoupling. This increased risk aversion has driven a reversal in the “BUY Banks SELL REITs” pair trade.
- - Read this at SGinvestors.io -
Time to re-enter the S-REITs as risk aversion prevails.
- A few months back, we raised the question on the longevity of the widely popular BUY Banks SELL REITs pair trade in Singapore REITs & Banks: Turning Of The Tide, Convergence of Returns in 2025-2026.
- - Read this at SGinvestors.io -
- That said, this is likely to change due to a pivot in the global growth outlook on the back of US President Donald Trump’s salvo of global tariffs, which hiked the prospects of a global slowdown in economic growth and potentially recession in certain countries. See Singapore Banks: Rough Seas Ahead.
Widespread US tariffs could sting and the probability of a recession in the US has risen.
- Read more at SGinvestors.io.
