Daily Recap: Rough Start To 2020 For Real Estate
- Picking up where they left off in 2019, US equity markets rallied on the first day of the new year with the major averages climbing to new record highs.
- After delivering total returns of more than 30% last year, the S&P 500 gained 0.9% while the Nasdaq gained 1.7%. The 10-Year Treasury Yield retreated by 4 basis points to 1.88%.
- Interestingly, even as bonds rallied, the broad-based Real Estate ETFs finished lower by 1.4% on the day with all fifteen sectors in negative territory, weighed down by retail REITs.
- REITs seem to be entering 2020 on most strategist's "underweight" lists, as they have for seemingly every year over the past decade, perhaps fueling some of today's selling.
- We recapped the performance over the last year and decade as well. Since the start of 2010, REITs produced a compound annual return of 12.6%, slightly shy of the 13.5% compound annual return on the S&P 500.
