Reconsidering REITs As An Investment In Today’s Environment

This article is an attempt at estimating frothiness in the US REIT market.  Looking at the previous 18 months of data, it is evident that the meteoric rise in REITs is largely attributed to falling 10-year government interest rates.

The alarming take-away is that REITs’ responsiveness to interest rates is nearly twice as large as the usually most responsive fixed-income group – long-term bonds.

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