July 4, 2006
REITs Still Outperforming After All These Years
I’ve featured a couple of REITs as Stocks to Watch in recent days (ESS, SLG) and have noted that the sector remains very strong.
Folks with long memories know that the REITs were totally out of favor and huge underperformers in 1998 and 1999. But when the bubble burst in the first quarter of 2000, people who were paying attention noticed that the sector was strong as everything else came crashing down.
Savvy investors shifted into REITs in May 2000 and held until April/May 2004 when they were shaken out. It didn’t take long for the trend to reassert itself though — long positions were reestablished in June 2004 and are still being held today.
(The same is true of Precious Metals, which were shifted into in November 2000. The ride there has been a bit bumpier and deserves a separate post to explain.)
Related: REITs Ignoring Rates
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April 20th, 2007 at 12:09 pm
[…] Last July I wrote a post called REITs Still Outperforming After All These Years, an excerpt: Folks with long memories know that the REITs were totally out of favor and huge underperformers in 1998 and 1999. But when the bubble burst in the first quarter of 2000, people who were paying attention noticed that the sector was strong as everything else came crashing down. […]