5 at 5: Your Daily Digest for Real Estate Investing, 5/28/21

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© Provided by Millionacres 5 at 5: Your Daily Digest for Real Estate Investing, 5/28/21

Capital gains clawback in the Biden budget? Inflation’s uneven effects on CRE. AMC theater stock putting on a show. Some REIT reasons to take a plunge or a pass.

In Today’s News

Biden Budget Said to Assume Capital Gains Tax Hikes Began in April

President Biden’s expected $6 trillion budget assumes that his proposed capital-gains tax rate increase took effect in late April, The Wall Street Journal says [subscription required].

The Millionacres takeaway: The WSJ points out that this would mean it’s already too late for high-income investors to realize gains at the lower tax rates if Congress agrees to the hikes. If you’re in that earnings echelon, you might want to consult your tax advisor sooner than later.

Inflation Might Not Deflate CRE Profits

Trillions in fiscal stimulus from the government and a dovish monetary policy from the Fed in place since the Great Recession could fuel a wave of pent-up demand from millions emerging from pandemic isolation, causing a rush of inflation not seen in decades.

The Millionacres takeaway: This GlobeSt.com piece takes a look at why one need not assume that all commercial real estate segments will feel the same effects. What’s bad for the goose may be worth a gander here, though, and it’s worth keeping up on different perspectives around rising costs.

AMC Stock Keeps Popping as Reddit Traders Keep Buying

AMC Entertainment Holdings (NYSE: AMC) stock continues to soar, thanks to Reddit traders who have helped double the share price this week and get its share price up 1,200% this year, CNBC reports.

The Millionacres takeaway: Like other movie theater companies, the pandemic has been nearly fatal to this operation, which has a lot of leases with real estate investment trusts (REITs) and other landlords. Whether this indicates a turnaround is in store is, of course, questionable at best. Just ask GameStop stockholders.

Today on Millionacres

3 High-Dividend Real Estate Stocks to Buy in June

In a low-interest rate world, it can be hard to find high-dividend payers worth buying, since investors have bid up the prices of just about anything with a notable yield. This is why you need to be extra careful when looking at dividend stocks.

The Millionacres takeaway: Our Reuben Gregg Brewer lays out while these three steady offerings can add some steak to the sizzle in the search for hot stocks.

Is ARMOUR Residential REIT in Trouble?

Mortgage REITs (mREITs) are notorious for volatility and risk. While this model of investing has major upside potential, it also comes with significant market exposure in the event of a financial or economic crisis.

The Millionacres takeaway: mREITs are not all alike, of course, and our Liz Brumer-Smith provides an insightful look at why ARMOUR Residential (NYSE: ARR) might be particularly vulnerable to any upcoming housing market spasms.

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