Monday , December 9 2019
Home / The Capital Spectator / US Real Estate Investment Trusts Topped Market Gains Last Week

US Real Estate Investment Trusts Topped Market Gains Last Week

Summary:
US real estate investment trusts (REITs) rallied last week, posting the strongest gain for the major asset classes, based on a set of exchange-traded funds. US REITs also continue to lead global markets with the highest one-year return as well. Vanguard Real Estate (VNQ) jumped 1.7% last week (through Nov. 15). The gain was by far the strongest increase for the major asset classes. VNQ had been sliding previously, after reaching a record high in late-October. The rebound that unfolded in last week’s trading has real estate’s bulls wondering anew if the ETF is laying the groundwork to reach a new record high in the weeks ahead. Last week’s biggest loser: emerging markets stocks. Vanguard FTSE Emerging Markets (VWO) tumbled 1.3%. In a round of profit taking, the crowd pulled back in

Topics:
James Picerno considers the following as important: , , , ,

This could be interesting, too:

oldprof writes Weighing the Week Ahead: Will This Rally Never End?

Gregor Samsa writes December 7, 1941: “We are all in the same boat now”

James Picerno writes Book Bits | 7 December 2019

James Picerno writes Is The November Payrolls Report As Good As It Looks?

US real estate investment trusts (REITs) rallied last week, posting the strongest gain for the major asset classes, based on a set of exchange-traded funds. US REITs also continue to lead global markets with the highest one-year return as well.

Vanguard Real Estate (VNQ) jumped 1.7% last week (through Nov. 15). The gain was by far the strongest increase for the major asset classes. VNQ had been sliding previously, after reaching a record high in late-October. The rebound that unfolded in last week’s trading has real estate’s bulls wondering anew if the ETF is laying the groundwork to reach a new record high in the weeks ahead.

US Real Estate Investment Trusts Topped Market Gains Last Week

Last week’s biggest loser: emerging markets stocks. Vanguard FTSE Emerging Markets (VWO) tumbled 1.3%. In a round of profit taking, the crowd pulled back in what had been a high-flying ETF of late. Indeed, VWO’s decline marks the fund’s first weekly setback in nearly two months.

The overall trend in global markets, however, remained positive last week. An ETF-based version of the Global Market Index (GMI.F) — an unmanaged benchmark that holds all the major asset classes (except cash) in market-value weights — rose 0.6%. The rise marks the sixth straight weekly advance for the index.

US Real Estate Investment Trusts Topped Market Gains Last Week

Meantime, US REITs continue to lead the major asset classes for the one-year trend (252 trading days). VNQ closed last week with 19.4% total return vs. the year-earlier level. US stocks are a close second with a 17.0% total return via Vanguard Total Stock Market (VTI).


Learn To Use R For Portfolio Analysis
Quantitative Investment Portfolio Analytics In R:
An Introduction To R For Modeling Portfolio Risk and Return

By James Picerno


Commodities (broadly defined) are still the only negative print for the major asset classes on a trailing one-year basis. The iShares S&P GSCI Commodity-Indexed Trust (GSG) is down 3.0% over the past year.

By contrast, GMI.F continues to post a strong 13.6% total return for the trailing one-year window.

US Real Estate Investment Trusts Topped Market Gains Last Week

Reviewing all the ETFs listed above through a momentum lens continues to reflect a strong upside bias overall. The analysis is based on two sets of moving averages. The first compares the 10-day moving average with its 100-day counterpart — a proxy for short-term trending behavior (red line in chart below). A second set of moving averages (50 and 200 days) represent the intermediate measure of the trend (blue line). At last week’s close, markets remained in a strong bullish posture in nearly every corner of the major asset classes.

US Real Estate Investment Trusts Topped Market Gains Last Week


Is Recession Risk Rising? Monitor the outlook with a subscription to:
The US Business Cycle Risk Report


James Picerno
James Picerno is a financial journalist who has been writing about finance and investment theory for more than twenty years. He writes for trade magazines read by financial professionals and financial advisers. Over the years, he’s written for the Wall Street Journal, Barron’s, Bloomberg Markets, Mutual Funds, Modern Maturity, Investment Advisor, Reuters, and his popular finance blog, The CapitalSpectator.

Leave a Reply

Your email address will not be published. Required fields are marked *