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.