06.07.2012 - Cooling real estate market bad news for REITs
There has been much talk about the impact that a slowing real estate market could have on Canada’s banks. But less attention has been paid to the impact that it might have on the REITs. That’s a mistake, BMO analyst Tom MacKinnon suggests in a note to clients. For one thing, while he agrees that a slowdown is a worry for banks, given their massive mortgage portfolios, in the longer term he thinks it might not be such a bad thing. "A slowdown in the domestic real estate market is good for long-term growth of Canadian banks as it should help Canadians reduce debt," he argues...............................................Full Article: Source
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