REITs Slow To Recover From Covid-19 (Particularly Lodging And Retail REITs)

by confoundedinterest17

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.

READ  A New Highly Resistant COVID Variant Has Emerged In California, And It Could Make This Plague Far Worse

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).

READ  Awake aware Australian public during AO 2021 booing for covid vaccine push by their own govt

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”?

 

 

618 views

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.