2024-02-16 02:28:00 ET
Summary
- The yield on 10-year Treasury Inflation-Protected Securities TIPS fell significantly from ~2.5% to ~1.7% in the last two months of 2023.
- How does this affect real estate?
- As long-lived, fixed assets with inflation-protective characteristics, quality real estate can be viewed as an equivalent to TIPS plus a risk premium.
- Mean reversion is not guaranteed in financial markets, but it does have an enviable track record.
By Daniel Scher , Portfolio Manager, Research Analyst, Franklin Equity Group | Blair Schmicker, CFA , Portfolio Manager, Research Analyst, Franklin Equity Group ...
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An Opportunity For REITs To Shine In 2024