REITs Rallying! Expect This Sector to Beat the Broader Market

The stock market didn’t exactly react well to the Fed’s non-decision to keep the targeted Fed funds rate unchanged last week. The S&P 500 and Dow both spent most of Thursday and Friday in freefall, and as I’m writing this, both are only modestly in the black today.

But one corner of the market has held up a lot better than the rest: boring, “bond-like” real estate investment trusts, or REITs.

You see, while stock prices dropped like a rock, bond prices actually enjoyed a nice rally. And REITs, which have come to be seen as bond replacements in this era of ultra-low bond yields, have followed suit.