Micro-Blog #1: REIT Selloff and its Affect on my Portfolio

Today stock market lost 177 points due to concerns over rising interest rates. Sectors like REITs are most sensitive to interest rates and were hit hard.

Assessing damage to my portfolio from today's REIT selloff:



Despite the recent REIT selloff, my REIT positions still show lots of green (unrealized gains). The green largely offsets the red (unrealized loss).

Is this a buying opportunity? Not yet, I think there is more downside in REITs. I would wait for momentum to turn-around in REIT sector before adding to my existing positions.

I would look at sector index such as VNQ to determine when momentum is turning-around in REITs.

Where would I be adding new cash in REITs when momentum turns-around? It would have to be in my best REIT performers DLR, MNR, and O. I may also add into existing losing positions but only after making sure they are moving upward with rest of the REIT sector.

A drop like today is a good reminder why investing in high quality stocks is a must.

How did your REIT/portfolio do today?

Comments

  1. Hey Mr. ATM. Glad to have you back. I thought you were exiting blogging? Couldn't resist a little (ie. micro) posting I see. Anyway, my REITs are struggling just like yours. Mostly due in my opinion to rising interest rate fears and rotation out of the sector. The corporate tax cut is making other sectors more attractive on a relative basis, in my opinion. I did add a bit to O recently when it dipped below 53. Tom

    ReplyDelete
    Replies
    1. Thanks Tom. Well l was taking a little break from blogging, kind’a reset of sort.

      Will try micro-blogging for a bit and see if it fits my taste.

      Yes REITs and Utilities are getting hammered, mostly due to interest rates increase. The 10-Year Treasury hit 2.7% yesterday, a high it hasn’t seen in four years.

      O is a quality REIT and a favorite of income investors, though likely more downside to come. But if you bought it for income then nothing to worry about.

      I would be getting O along with a few others when the yield gets at least above 5%. Need to keep a nice margin to 10-Year Treasury rate.

      Thanks for stopping by.


      Delete
  2. Welcome back Mr. ATM, we've missed you. :-)

    It's indeed a bad time for REITs. I'm planning to dca all the way down with O.

    ReplyDelete
    Replies
    1. Thank you Mr. Robot :) Yes, DCA is a great idea, though be careful averaging down.

      Delete

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