Will REITs Shine in 2019?

By Steve Brown - January 15, 2019

Not only am I optimistic about REITs in 2019, I think they'll outperform the equity markets.

Why am I so enthusiastic? For two reasons, primarily. First, I think dividends and the stability of earnings will play a huge role. And second, the U.S. Federal Reserve has indicated that it's approaching a neutral posture on interest rates. In other words, it appears that the string of rate hikes we've seen is coming to an end. That'll present a real tail wind to REITs, as opposed to the head wind of rising rates in 2018.

Specific to REITs, I like residential properties in 2019. But I'm not so optimistic about hotels, for example, because we appear to be getting close to the end of the current economic cycle. If that's the case, it would hurt hotel earnings due to potentially lower consumer spending.

Check out my 2019 investing outlook video, where I also break down which geographies I'm more interested in—and not—and what keeps me up at night in the current environment.

Steve Brown
Steve Brown


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    Will REITs Shine in 2019?

    If market growth rates slow to single digits in 2019, Sr. Portfolio Manager Steve Brown believes REITs and their dividends could become more attractive.

      Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

      References to specific securities are for illustrative purposes only, and are not intended as recommendations to purchase or sell securities. Opinions and estimates offered constitute our judgment and, along with other portfolio data, are subject to change without notice.

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