Video Update - Our Portfolio Looks Great Heading Into This Earnings Season

REITs are moving up

Author

Tim Melvin
October 22, 2024

Were you forwarded this email? Subscribe here for free.

Premium Video

Editor’s Note: Tim just released his latest, Premium-exclusive weekly video reviewing what investors need to know heading into a busy earnings season and more. Below is a brief preview. To access the whole video, upgrade to Premium!

Welcome to the Real Income Report Weekly Update for the week of October 21, 2024. This week, we'll focus on general concepts and ideas as we prepare for a busy three to four weeks ahead.

Market Overview

The S&P 500 is off a little bit today, but the reason doesn't really matter. As Jonathan Honig of CapitalistPig.com emphasizes in his new book, price and trend are what truly matter when looking at asset classes and the world in general.

Stocks have been in an uptrend since spring 2023, with the exception of a brief dip below the 50-week moving average in 2023. We're now 18 months into a strong bull market, despite today's slight pullback.

Real Estate Market

The iShares U.S. Real Estate Exchange Traded Fund shows that REITs had been in an extended bear market since 2022. However, around Halloween last year, the trend changed, and we entered an uptrend. Real estate markets have been recovering since May of this year, with a long way to go. Traditionally, we can expect two to three years of outperformance when real estate markets bottom out like this.

Investing in the Big Five REITs is a simple, and very effective, way to capture that outperformance. But if you want even higher returns than the REIT market at large, from niche, extremely well-positioned REITs targeting the best sectors and areas of the country, the Total Return Model Portfolio is what you need to look at. This portfolio, available only for readers who upgrade to Premium, contains 15 REITs with solid fundamentals that are deeply undervalued. I believe this is one of the best investment strategies available right now.

Subscribe to Premium to read the rest.

Become a paying subscriber of Premium to get access to this post and other subscriber-only content.

Already a paying subscriber? Sign In.

A subscription gets you:

  • • No ads.
  • • Access to Tim's Total Return Model Portfolio, focusing on underpriced REITs with excellent fundamentals.
  • • Access to Tim's Real Income Model Portfolio, focusing on bonds and preferred shares issued by the best REITs in the country.
  • • Access to Tim's "REIT of the Week," where Tim picks the best-priced, highest quality REIT to buy every week.
  • • Exclusive weekly video (and transcript) from Tim with his analysis of the REIT sector, the economic trends affecting real estate, and updates on the stocks in the model portfolios.