US Residential REITS Locked in Persistent Downtrend
November 22, 2013
By Uncategorized in
Over the last year, as taper concerns have flared, US residential REITS have struggled. As a group they have underperformed the MSCI World index by 24% on average. The chart below shows the relative performance.
![image](http://blog.gavekalcapital.com/wp-content/uploads/2013/11/6a596994e2f84515bdcd17efbfcc6fd3-300x63.png)
All four stocks look like they are locked in persistent downtrends. Ignat’s rule states that a portfolio full of underperforming stocks is likely to underperform. The best way to confront this truth is to avoid stocks that are underperforming…especially those locked in persistent downtrends.
![image](http://blog.gavekalcapital.com/wp-content/uploads/2013/11/3080a931fa8d4e89b5c8445f388d15c5.png)
![image](http://blog.gavekalcapital.com/wp-content/uploads/2013/11/3cdf4b86647c4841b077fd1737302dd0.png)
![image](http://blog.gavekalcapital.com/wp-content/uploads/2013/11/92626f06be7b4d7da607c8bbf914cc35.png)
![image](http://blog.gavekalcapital.com/wp-content/uploads/2013/11/61f5e25cb3eb40158ec2f656adf49cd9.png)
Tags > REITs