What you need to know about this stock market selloff (Tuesday Update)

We spoke with a wide range of financial professionals to help guide you through the rest of 2015.

Sourced through Scoop.it from: www.marketwatch.com

Thankfully, Tuesday’s stock market selloff was not as bad as Monday’s. Although we were not planning to post this extraordinary note, we decided to based on the fact that major indices ended up dropping again by the end of the day. This includes a prominent Real Estate Investment Trust, or REIT index. As we awoke to China’s announcement regarding new measures that will boost their domestic economy, the US markets held up throughout the day. The MSCI REIT Index, or ^RMZ (NYSE), much like the S&P 500, and Dow Jones Industrial, waited to fall until the very last hour of operations. Of course, this led to speculations about what would happen during the remainder of the week.  

RMZ dropped by 2.6 percent; the S&P 500 fell by 1.35 percent, and the Dow Jones Industrial Average lost 1.29 percent. The RMZ now weighs in at the same level as October 2014, washing any gains that took place between then and now. Vanguard REIT (NYSEARCA:VNQ), a popular REIT exchange traded fund (ETF), fell by 2.75 percent.

REIT stocks declined across all sectors on Tuesday. The median returns by sector fluctuated between Infrastructure’s negative 1.3, and Office’s negative 2.7 percent. The median return among the 175 stocks we follow was a negative 2.2 percent. Individual REIT stocks returned between plus 2.4 percent, and negative 4.5 percent. On Tuesday, ten out of 175 stocks were up, compared to only one on Monday. So far this week, there has not been a single stock that returned positively, and some stocks have fallen as much as 10.6 percent. 

Check the best and worst performing REIT stocks

Disclaimer: This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy.

Disclosure: The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s