The December 2024 interest rate cut of 25 basis points could be the last until after September. The federal funds rate may dip below the current effective rate of 4.23%, which is already below the long-term average of 4.61%. Investors looking for balanced returns may consider commercial real estate investment trusts (REITs) for 2025. REITs offer consistent high-yield passive income through diversified portfolios of income-producing real estate. After nearly a 30% gain since April's lows, the market is perceived to be overbought, indicating that REITs may benefit from lower interest rates.
The December 2024 interest rate cut of 25 basis points is expected to be the last until at least September, offering a potential for lower federal funds rates.
Investors seeking total return may consider commercial real estate investment trusts (REITs) as they provide high-yield passive income and exposure to hard assets.
The market appears overbought after a nearly 30% gain since the lows of April, suggesting caution in investment strategies.
Five companies were identified as top investment choices in the commercial REIT sector, showing strong fundamentals, undervaluation, or growth potential.
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