BULLISH
I'm very bullish on real estate businesses! The S&P 500 Real Estate sector was up 8.2% year-to-date through August, which suggests there is some nice forward momentum in this area.
The real estate group is dominated by equity REITs, entities that invest in physical property and typically receive rental income from their investments.
Low interest rates across the world have enabled real estate investors to buy property with relatively “cheap” money, which provides the potential for greater income.
However, this may be changing now that the Federal Reserve is hiking rates and the ECB may start to do the same in Europe.