2 REITs to Avoid, 3 to Buy Now

The REIT market has been on a tear in 2016. From the start of the year to October 1, the SPDR Dow Jones REIT ETF (RWR) gained over 6% while heavy-hitters like the Realty Income Trust (O) and Digital Realty Trust (DLR) rose more than 28%. Now we’re in the midst of a REIT correction, and it’s hitting the best-performing REITs the most. That’s to be expected—after so many months of relentless strength, these names need to come back to Earth. And now it’s happening – just look at this chart: What Comes Up Must Come Down—But How Far Down? After months of massively outperforming the market, both O and DLR are now falling fast. Fundamentally they remain good investments, though. ... Read more