2 REITs Walking a Different Path
Instead of actually managing and holding real estate, this pair hold mortgages. While the niche is small and can be risky, these pass the test, observes Neil J. George of Liberty Investor.
Worried that Congress and the White House will actually do something about the budget for next year? It's possible, and the results would be a combination of higher taxes and some spending cuts. This, of course, is coming at a time when the US economy isn't really firing on all cylinders.
Despite the bump up in gross domestic product for the third quarter to 2.7%, versus 1.3% in the prior quarter, the economy is still sluggish. In fact, it's interesting to note the per-capita GDP rather than just the overall GDP numbers. On a per-person basis, US growth is running at only 0.97%. This might better explain why many Americans aren't feeling all that more productive or successful.
With higher tax bills, all of us will have less to spend and invest, which will put a damper on-if not work to reverse-economic gains.
Then, if we see less spending by the Federal government (which is currently making up 23.9% of the domestic economy with just the straight budget and on-balance-sheet expenditures), it wouldn't take too many calculations to see a negative impact on economic growth in the near term with spending cuts.
The Federal Reserve knows this, and has been working overtime to see what it can do on the monetary policy side to offset the potential fiscal changes on top of the rest of the current economic and market challenges.
The Fed has been very busy buying bonds.