Trump Throws Monkey Wrench Into REIT Sector "Donald Trump's election in November further contributed to those trends. The election and his attraction to a stronger dollar have helped spur higher rates ...". This quote has it backwards.
It's the other way around. Higher rates since the election caused the Dollar to soar against other curriencies. (The author suggests the opposite). And I'm not sure there was any intent on the part of Trump either. Investors, fearing higher inflation if he funds massive infrastructure with debt have reacted predictably by demanding a higher rate of return on money lent. That's why rates have risen since his election. Currency traders, seeing the now higher rates available on U.S. debt have consequently bid the dollar higher against other currencies. Remember, however, the dollar was already sitting at multi-year highs before the election. Even at 1.37% on the 10-year the dollar looked attractive against many other currencies where negative rates had been imposed by central banks desperate to spur growth and inflation. (The Federal Reserve also contributed to higher rates, but the trend was well in place before they acted.)
As suggested by others, a strong dollar cuts both ways. It makes imported goods cheaper for Americans to buy but harms U.S. exporters by making their products more expensive (and less competitive) abroad. Perhaps missing from the article/discussion is that a strong currency can have deflationary consequences. That's one reason nations around the world have been attempting to weaken their currencies. As for REITS, don't feel too sorry for them. I purchased a small hold in OREAX in early September, 2015. In fewer than 16 months it's up 17.5% - not too shoddy.
2016 Capital Gains Estimates So, Mairs & Power might well be the very LAST to pay-out profit to shareholders:
MPGFX $5.04/share
MAPOX $1.58
MSCFX $0.46 cents
