Saturday, September 6, 2014

One REIT Ready to Breakout

The continued search for yield by investors has pushed the DJ US REIT Index (DJUSRI) to a 17.8% gain for the year compared to the Spyder Trust’s (SPY) 9.6% gain. Many investors buy based on yield alone but I have long advised that you need to do much more fundamental as well as technical research before you buy a high yielding instrument.

For many years, I have recommended that investors avoid Annaly Capital Management, Inc. (NLY) because of its very weak technical outlook. This was more important than its high yield and for the past three years NLY has had a total return of -0.50%.
So, how do the REITs look from a technical basis and are any worth buying now? (more)

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