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Your reply is foucsing on the effect of interest rates on the businesses of REITS. I was actually focusing on a differnet side of the issue. ASSUMING that as 10-year Treasury rates rise, that REITS remain about as profitable as they were, how ill the market PRICE the income stream from the REITS. All other thinbgs being equal, as 10-year rates rise, investors will ultimelty pay LESS for the same income stream. This is almsot a truism and is tur ein a simple mechnaicla way with bonds. The Fed Model (see the Yardeni site I lisyed)seems to indicate thaT the same principal holds true for stocks as for bionds. THe yield on stcoks, represnted by the forwa
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