The Real Estate Select Sector SPDR Fund [XLRE] Stock Forecast

Entry point alone, with VNQ down 30% could beat the market in the next decade with the current massive, growing dividend yield. REITs are the most interest rate sensitive sector of the economy, and the government will eventually need to lower rates to fuel their own expansion. Vanguard is my favorite ETF operator and the one private asset manager without the pressure of corporate profitability.

REITs have dropped by about 30% since early 2022, much more than other defensive, debt-utilizing sectors like utilities and consumer staples. Interest rates are unlikely to increase significantly further from here, while REIT fundamentals remain strong, aside from the notable exception of office buildings. I highlight 6 of my favorite blue-chip REITs with investment-grade credit ratings, low-leveraged balance sheets, and strong long-term growth prospects.

Rising inflation expectations (higher yields, stronger USD) have led to capitulation in investors' positioning in REITs. Curiously, the gold-to-copper ratio is on the verge of breaking out higher, which might spell a top in inflation. While REITs offer a huge opportunity, entry timing is key. I am watching for confluence in correlated charts (bonds, yields, USD) as clues on when the sector is bottoming.

Christopher Merrill, CEO of Harrison Street, discusses the best places to invest in the markets.

Carter Worth, Worth Charting, talks the office space rebound and why he is sticking with REITs.

Anthony Doyle from Firetrail Investments explains why he thinks it "pays to take a contrarian view" and continue investing in the U.S. homebuilders sector.

Despite the potential for markets to go lower, a lot of bad news has been priced into REITs in general. Despite the common perception of REITs being risky due to their sensitivity to interest rates, several factors make them an attractive investment option right now despite my overall skepticism. It's a common perception that REITs underperform when interest rates rise.

Commercial real estate faces increasing risks due to tightening monetary policies, rising interest rates, and pandemic-induced structural changes. Access to loans has become more difficult, leading to decreased demand and declining property prices, posing risks to the financial system and regional banks. Despite downside risks, I remain a buyer on weakness, recommending investment in companies with strong balance sheets and secular tailwinds.

U.S. equity markets climbed to their highs of the year as investors took positions ahead of a critical slate of inflation data and an anticipated "pause" in the Fed's rate hike cycle.

Wall Street experts differ in their outlooks for America's housing market.  Wharton professor Jeremy Siegel, real estate tycoon Jeff Greene, and others have warned that home prices will drop, while others like "Shark Tank" star Barbara Corcoran are more optimistic.

The Real Estate Select Sector SPDR Fund is a US stock and trading under the symbol XLRE

The Real Estate Select Sector SPDR Fund stock price is $34.4496 today.

Yes, The Real Estate Select Sector SPDR Fund is a publicly traded company.