Real estate investment trusts (REITs) have been slow to recover from Covid-19, much like me.
Since February 20, the NAREIT index has declined 12% (sans dividend reinvestment).
The S&P 500 index rebounded nicely from the Covid-19 outbreak in the US back in late February. The NAREIT index rebounded until June but has essentially flat-lined since then. So The Fed’s bazooka did not hit all assets equally.
As various local economies open back up, hotel and lodging will pick up as well. Retail? Not so much thanks to the Amazon-effect (on line shopping partially replacing in-store shopping).
The NAREIT-all equity index is at the upper bound of P/E bands.
So, The Fed’s bazooka cannot overcome the economic devastation caused by Covid and government shutdowns.
Is Powell “Bazooka Joe”?