Real Estate Euphoria Highlights Trader Angst for End to Hikes
- Cohort finishes Nov. as second best-performing group in S&P
- BofA analyst calls REITs equity’s ‘diamond in the rough’
The group rallied 12% in November versus the S&P 500’s 9% gain, notching its best month since 2011.
Photographer: Shelby Tauber/BloombergThis article is for subscribers only.
Real estate finished November as the second best performing group in the S&P 500 Index adding 12%, trailing slightly behind tech’s 13% gain. The momentum was fueled by bets the central bank may begin cutting rates as early as next year.
In November, the interest-rate sensitive sector was a market outperformer as investors poured capital into the group. A pullback in Treasury yields has also supported trader optimism that the worst of it could be over. Additionally, US real estate investment trusts, which have been beaten-down by surging interest rates and economic uncertainty, are now flashing signs of strength.