REITs Are Rocking (Not ‘Dead Men Walking’)
- Instead of responding on the blog, I thought it would be best to debunk the use of the “dead man walking” metaphor.
- The long real estate market cycle may encompass several weak non-cyclical months or quarters, and to date, the duration of the current cycle is far less than previous cycles.
- REITs have outperformed the S&P 500 in recent months, with a cumulative total return of 14.6 percent since their low point in early February.
Always recognizing that data drives decision-making, our goal is to bring Intelligent REIT Investing to an all-new level.
Yesterday, a loyal reader and follower on Seeking Alpha wrote:
“I love REITs, but the high share prices, low dividends, 9-year bull cycle, and future trends do not portend well.”
Mt friend added:
“I would advise most REIT investors to think of retail/commercial/lite industrial (jiffy lube etc) … as dead man walking. No, it is not dead, but the best days are behind. And in 10 years the demand equation will be making it a buyers mkt.”
Now, I don’t know about you, but when I think about the term “dead man walking”, I am referring to someone who is about to face unavoidable loss, though he or she may not realize it. So, when used in this context, as I’m sure my friend meant, the term is a metaphor comparing loss to dying.
Instead of responding on the blog, I thought it would be best to debunk the use of the “dead man walking” metaphor by writing a detailed article called “REITs are Rocking”.