FYI: Reconsidering REITs. Bond market volatility around
shifting expectations of Fed hike timing not yet providing
an entry point for REITs; signs of a cyclical peak are
emerging; valuations are broadly rich, and secular
fundamentals, especially for retail-related operators are
increasingly challenged; in many commercial sectors,
asset dispositions are rising, prices are falling and lending
conditions are tightening; in multifamily, supply-demand
imbalance is quickly resolving and vacancy rates have
likely troughed. Consider REITs selectively within the
context of a portfolio underweight; as a bond proxy, we
still prefer consumer staples and utilities.
Regards,
Ted
http://www.morganstanleyfa.com/public/projectfiles/gicweekly.pdf
