"But this year, it's been a stellar month, with the S&P 500 gaining just shy of 4% so far this month and the Nasdaq 100 pole-vaulting nearly 5%. And while I may be speaking too soon, given there are two more trading weeks left to go, it's quite shocking how bullish things got leading up to the big Fed decision."
"The Vanguard Real Estate ETF ( NYSEARCA:VNQ) stands out as a major winner from a lower-rate environment. Though the REITs aren't known for their growth prospects, I must say that lower rates could make them growthier than they have been in recent years. Undoubtedly, lower rates are a huge deal for the REITs. And while some REITs have more room to gain than others, I'd much rather be in a one-stop-shop ETF like the VNQ."
The Federal Reserve delivered a quarter-point rate cut and signaled additional cuts ahead, creating a more favorable environment for equities. Major indexes rallied in September, with the S&P 500 up nearly 4% and the Nasdaq 100 rising about 5% as sentiment turned bullish. Lower interest rates reduce financing costs for real estate investment trusts, improving distribution capacity and making REIT-focused ETFs like VNQ attractive for income and potential growth. Valuations may be stretched in anticipation of rate cuts, but select ETFs remain compelling for growth, dividends, and dividend-growth strategies. Broader shifts, including AI-driven labor impacts, could further accelerate easing and benefit income-oriented equities.
Read at 24/7 Wall St.
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