Will These 2021 REIT Winners Bounce Back From Their 2022 Slumps?
The stock market took another hit on Friday, as investors reacted to a combination of news that created even more uncertainty about the future. A strong employment report pointed to a robust U.S. economy that, in turn, would tend to signal higher interest rates ahead.
However, many conservative investors turned to the bond market as a safer place to put money than stocks right now, so yields actually fell despite the potential inflationary pressures from greater wage growth than expected. The net result was a drop in the stock market. As of noon ET, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 458 points to 33,337. The S&P 500 (SNPINDEX: ^GSPC) fell 68 points to 4,296, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 283 points to 13,254.
Many investors have tried to broaden and diversify their portfolios beyond typical stocks, and one area that's gotten more attention is the real estate investment trust (REIT) universe. REITs like marijuana-industry specialist Innovative Industrial Properties (NYSE: IIPR) and data center property-holder Digital Realty Trust (NYSE: DLR) had strong performances in 2021, producing total returns of 47% and 31%, respectively, last year. However, the two have taken huge hits so far in 2022.
Source Fool.com
