EQIX - Rate Cut Or Not I'm Buying These Wonderful REITs

2024-04-25 07:00:00 ET

Summary

• I expect a REIT rally to occur whenever the Fed decides to pivot down a dovish path.
• But I don't know when the Fed will decide to start down that path.
• Here are three blue-chip REITs that offer a double-digit upside regardless of the Fed's actions.

Last week, I wrote an article, highlighting what I called the REIT Rally 2.0, using the sector’s performance from late 2023 as a guide to what I expect to happen whenever the Fed decides to pivot down a dovish path.

Each of the top 20 REITs that I track offer double-digit upside, looking at multiple expansion via mean reversion potential.

In this piece, I want to respond to some of the feedback that I got from that article…namely around the question: Well, what if the Fed doesn’t pivot?...

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