Do REITs blow up if interest rates spike?

///Do REITs blow up if interest rates spike?

Do REITs blow up if interest rates spike?

By | 2014-05-09T14:14:11+00:00 May 29th, 2013|Uncategorized|8 Comments
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(Last Updated On: May 9, 2014)

Depends on the time period analyzed…

  • Positive correlation between rates and REIT returns prior to 2000
  • Negative correlation post 2000.
  • Extreme positive interest rate moves have historically been associated with extreme positive AND negative returns.
  • Unclear what will happen to REITs.

Longer report here

reit

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After serving as a Captain in the United States Marine Corps, Dr. Gray earned a PhD, and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management that delivers affordable active exposures for tax-sensitive investors. Dr. Gray has published four books and a number of academic articles. Wes is a regular contributor to multiple industry outlets, to include the following: Wall Street Journal, Forbes, ETF.com, and the CFA Institute. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania.