Author Topic: SLF and the property market  (Read 500 times)

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Offline Jennifer S

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SLF and the property market
« 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?

Offline Dave McCulloch

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Re: SLF and the property market
« Reply #1 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.

Offline Gary Stone

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Re: SLF and the property market
« Reply #2 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
On the journey

Offline Jennifer S

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Re: SLF and the property market
« Reply #3 on: 03/04/2019, 01:22:11 PM »
Dave and Gary, thanks for that