Macro Market · Market Commentary · Trading Game Plan

Market Commentary – 4 Reasons to Long REITs in 2017

Summary

  • Real Estate Investment Trusts (IYR) have underperformed S&P 500 (SPY) by about 7% on the back of higher interest rates during second half of 2016.
  • Negative correlation between 10-year Treasury yields and IYR’s performance likely to diminish as real interest rates normalize higher.
  • Strong dividend growth, higher inflation outlook, increased investor demand and positive technical picture are supportive of a bullish year for REITs in 2017.

Read more here.

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