|
Real estate is has had its fair share of ups and downs in the last couple of years. Many people view Real Estate Stocks as an avenue for wealth. Real estate is an asset that has the potential of turning ones fortunes instantly. This can either be positively or negatively, as has been the case in recent years. Often when asset classes or specific areas of the economy are not in sync with the investment community, there are great opportunities to be had. The interest in specific stocks at different times is a testament to this fact. The best stocks are those that realize the best returns. When looking to invest in stocks, it is important for the investor to read the market in order to know the stocks that are most viable. There are people who believe that you cannot go wrong with real estate stocks. It is , however, important to look for the stocks that have low price multiple valuations. The forth quarter experienced strong gains in the stock. This was in great contrast to a few months before when there was panic brought about by Europe's debt crisis. The performance of the fourth quarter was the best since 2009. We are living in a global economy and what happens in one part of the world has direct implications on other regions. The issues going on in Europe have the potential of affecting the stocks in the US, and can also threaten to derail the recovery of commercial real-estate. Europe’s debt crisis can mean that availability of credit in the US is drastically reduced. There is a real fear that massive layoffs can occur, which means that commercial landlords can begin to see occupancy and rental rates going down. The crisis also means that consumers have less to spend especially on discretionary goods. Economic indicators help to gauge where the market is headed. Investors look to put their money in relatively low risk and high dividend stocks. The real estate sector has continued to improve due to improved occupancy and rents. While retail real estate has continued to perform poorly, many investors are looking at high- end facilities such as upscale shopping malls. Hotel stocks continue to perform poorly as investors dump the stocks. The stocks are posting negative returns which seem to be in contrast to the fact that the hotels have been reporting increased occupancy. Buying REIT ETF is an investment practice that is catching on around the world. Today, it is possible to get wealthy without owning any physical assets. Before embarking on buying stocks, whether Real Estate Stocks or any other stock, it is important to have sufficient knowledge about the market as well as the expected trends.
Related Articles -
REIT, ETF,
| 
