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General => General Discussion / Chit Chat => Topic started by: Jennifer S on 02/04/2019, 11:02:42 AM

Title: SLF and the property market
Post by: Jennifer S on 02/04/2019, 11:02:42 AM
HI All and Team
Just wondering why with all the property falling media talk and having been so for some months now, why the SLF etf seems to be ignoring the data and going in the opposite direction. I can understand this with a stock but with an ETF which I understood better reflected the market how does this work? I also thought that the chart was more a leading indicator and the general economy a lagging one, Maybe this is what is happening? any thoughts?
Title: Re: SLF and the property market
Post by: Dave McCulloch on 02/04/2019, 03:20:27 PM
Hi Jennifer,

There are a huge number of factors that will be impacting on the fortunes of the property sector, but one of the main reasons that investors have bought into property trusts has been the yield that they've offered.

Currently SLF has a yield of around 7.5% and that might be one reason for the recent price moves, as demand "pressure" for SLF is currently outstripping supply "pressure".

For how long this continues is unknown, but that's where price action and technical analysis are useful in defining the beginning and ends of trends.

Regards,

David.
Title: Re: SLF and the property market
Post by: Gary Stone on 02/04/2019, 04:53:21 PM
Jennifer,

To add to David's response, most of the media falling property prices talk has been about residential property. SLF is the ETF for the ASX200 Listed Property Trusts, which is large commercial property.

Residential and commercial property don't move in sync with each other.

Regards
Gary
Title: Re: SLF and the property market
Post by: Jennifer S on 03/04/2019, 01:22:11 PM
Dave and Gary, thanks for that