Don’t bet momentum on global REITs

27 Sep 2016

By Scott P. Hasting, Portfolio Manager, REIT Investments

Key takeaways

  1. Despite the temptation to double down on investing in countries or regions that have performed strongly in recent periods, we think investors would do well to avoid overreacting, stay flexible, keep studying economic developments around the world, and be prepared to take advantage of changes in the broader investment outlook.
  2. U.S. real estate investment trust (REIT) markets appear likely to remain competitive in the coming quarters, but it’s not too soon to view them through a slightly defensive lens.
  3. Historical data show that when added to a portfolio of traditional stocks and bonds, global REITs can have a positive effect on returns while only marginally increasing volatility.

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