Income hunters that made their way into real estate investment trusts (REITs) at the start of 2019 are rolling in more than rent checks right now. Not only did they enjoy the sector’s generous dividends, they enjoyed big price gains to boot.
Even the “dumbly indexed” Vanguard Real Estate ETF (VNQ) peeled off a sweet 28.9% in total returns last year. That’s its best showing since 2014, and more than double its average annual return of 11%-plus over the past decade.
But do these big 2019 gains mean that we’re due to regress in 2020?
I’ve previously warned about the dangers of holding REITs whose fundamentals are out of whack with its valuation.… Read more