In the wake of rising interest rates, Real Estate Investment Trusts (REITs) have consistently demonstrated a remarkable ability to outshine the broader market. Historical data reveals that REITs have historically outperformed the S&P 500 over various time frames, including 90, 180, and 365-day periods. This phenomenon is illustrated in Figure 1.
It’s worth noting that this trend was extensively explored in a previous article, published in May 2024. The author’s personal views and opinions are reflected in this piece, which is based on their own research and analysis. It’s essential to recognize that past performance is not a guarantee of future success, and individual investors should carefully consider their own financial goals and risk tolerance before making any investment decisions.
The author holds a long position in several REITs, including AVB, CPT, AMH, INVH, PSA, and EXR, through a combination of stock ownership, options, and derivatives. However, they do not receive compensation for this article and have no business relationships with the companies mentioned.
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