US Residential REITS Locked in Persistent Downtrend

November 22, 2013

By Knowledge Leaders Team in Uncategorized

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.

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.

Tags > REITs

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