Tech Stocks Are Getting Slammed. Time to Buy REITs?
The technology-heavy Nasdaq Composite Index is down 27% through roughly the first six months of 2022. That's way worse than the S&P 500 Index's 20% drop. And while the average real estate investment trust (REIT) is down just as much as the S&P, there's one thing REITs have over that index and the technology stocks that drive the Nasdaq: dividends. Here's why you might want to start adding some REITs to your portfolio today.
When times are good, investors will believe almost anything in an effort to explain skyrocketing stock prices. For example, during the dot-com mania at the turn of the millennium, money-losing companies only had to show that they were getting increasing traffic to their websites to justify lofty stock prices. During the pandemic in 2020, the story was that new technologies would foster a permanent shift online for employees and customers who would do everything at home. Neither of these things panned out -- though, admittedly, the work-from-home issue is still evolving.
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Source Fool.com
