Alex Pettee, CFA
REITs Dip 3% on Monday, Still Outperform The 4.2% Plunge in S&P 500
REITs dipped 3.0% and homebuilders plunged 4% on Monday amid a broader equity sell-off that saw the Dow down 1600 points at the lows. The 10-year retreated back below 2.80%.
The equity market sell-off intensified around 3pm as the Dow plunged nealry 1000 points in a matter of minutes, likley sparked by a large liquidation perhaps related to the crash in crytocurrencies. Since Bitcoin Futures were established in January, the value of these contracts are down more than 60%. Dozens of highly leveraged "crypto hedge funds" have been created in the past several months. A large liquidiation of one of these funds could have contributed to rapid sell-off this afternoon.Liberty Property Trust, Highwoods, UDR, and Macerich report earnings tomorrow.
Nearly 20 REITs were down more than 4% on the day.