U.S. REITs – Stocks In Recovery

Stock markets around the world rallied on Thursday and crude oil rebounded sharply after strong U.S. economic data and hints from a U.S. Federal Reserve policymaker that a September interest rate hike …

Sourced through Scoop.it from: finance.yahoo.com

This Wednesday, we have seen a movement opposite that of previous days. All REIT sectors had positive average returns, and few stocks tanked. The 175 stocks we follow had a median 2.3 percent return. The market has definitely been emotionally charged this past week; some would say like a six-year-old child. We have seen no signs of another selloff on Thursday, quite the opposite.

There is a long way to go yet before we can say REITs have recovered from this selloff. So far this week, the median REIT stocks return has been -4.5 percent. Again, all REIT sectors have accumulated huge losses, but the manufactured homes sector in particular has demonstrated strong rebound, with a cumulative return of -1.5 percent.

Kansas City Fed President Esther George said this week that from time to time, we should expect some volatility, which will affect monetary policy in an as-yet-uncertain way. The past week’s events may not preclude the Fed from proceeding with the interest rate increase. George reaffirmed that the fundamentals of our economy have been positive, with no signs of deflation. Inflation is a major force behind interest rates.

Performances of major indices this Wednesday, some pertaining to REIT space:

• Dow Jones Industrial (^DJI) 4%

• S&P500 (^GSPC) 3.9%

• MSCI US REIT Index (NYSE:^RMZ) 2.7%

• Vanguard REIT ETF (NYSE:ARCA:VNQ) 2.7%

Check our reports for the previous days. 

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.

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