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Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend

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To: James Kibler who wrote (2533)5/26/2004 4:49:59 PM
From: Grommit   of 2561
 
A couple of charts to ponder...

One:
The REIT index vs DOW and S&P for one year. The bubble in March is clearly visible.
finance.yahoo.com

(PS I think you need to add dividends to the returns. 6% or 7% for the REIT line and 0.4% for S&P 500.)

............................
Number Two:

It is REIT index vs. 10 year interest rates. Normally the REIT index moves opposite to the 10 year yield (click on the 6 month chart to see it):
finance.yahoo.com^RCI&t=6m&l=on&z=m&q=l&c=^tnx

I normally see the same relationship with the 5 day chart.

But look at the one year chart. I don't see as much correlation as with the 6 month. In fact, you can see the interest rate jump up from July 03 - Sept 03 with no hit to the REIT index. Then when interest rates make the same move this year, REITS get slammed. ???

enjoy!
grommit
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