High Time for REITs?

Charles Fitzgerald of American Century Real Estate thinks real estate stocks will continue to outperform the overall market

Mutual funds that invest in stocks of real estate investment trusts (REITs) -- publicly traded real estate portfolios -- have performed well since the beginning of 2000, as weary investors moved cash out of the collapsing high-tech sector and into "safer" more reliable industries like real estate. Fundamentals in the industry have been vibrant for the past few years, even when REIT stocks did poorly. But now the real estate sector is starting to show some wear and tear from a slowing economy and a decrease in demand.

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