As we showed last week, the REIT index bounced off its 1998 bottom and has broken its two-year down trendline. It has also achieved a bullish breakout by exceeding its January high. The weekly MACD lines along the bottom also look strong. The easiest way is to buy a REIT mutual fund. The simplest way to participate in a strong sector or industry group is with a matching mutual fund.
Real estate is no exception.
We don't know for sure if the market is slipping into a bear trend, but given the age of this bull market, higher inflation numbers, a hostile Fed, and an inverted yield curve, it's a real possibility. A more direct way to profit from a bear market is to invest in a bear market fund. There also comes a time when preservation of capital should take a higher priority. On both counts, we may have reached that point in this cycle. While we always hope for the best, it may be time to start preparing for the worst.