Global Listed Real Estate

Global Listed Real Estate – Ranging REITs

Global REITs were one of the key casualties of the initial leg of the global equity market correction this year (i.e. the part which was driven by spiking bond yields).  The charts below provide a survey of some of the major global REIT markets, and come from the new weekly Global Cross Asset Market Monitor (get in touch for details).  Since then REITs have rebounded along with global equities, but with bond yields struggling to push any higher, the more stable relative-value backdrop (reach for yield) has helped further.


Q2 hedge fund letters, conference, scoops etc

The way I think about REITs is that very short term they are quasi-fixed income assets given the duration risk/interest rate sensitivity aspect.  On a more medium term basis I’ve found they are more akin to growth assets – trending higher during an expansion… and like the rest of equities falling into a recession/growth slowdown.

Global Listed Real Estate

At the moment I’m still leaning bearish REITs, particularly following the rebound to the upper end of the range, as they remain sensitive to a possible further push higher in bond yields. The other thing is commercial property valuations have been inflated by the low yield environment, and these high valuations depend both on low yields and continued growth in rental income.  We often cover REITs and property in our institutional research service, as there can be some very good opportunities to add value in this space through the cycle for active asset allocators.

Article by Top Down Charts


Saved Articles

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Welcome in the new year by signing up up for ValueWalkPremium today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 1/31/2019 or after next 30 23 subscribers take advantage whichever comes first – please do not share this discount with others