Real estate investment trusts (REITs) are a popular choice for investors looking to gain exposure to real estate. Known for their attractive dividend yields, REITs have become a favored option among income-focused investors. However, the Fed's high interest rate regime over the past two years has posed challenges for REITs.
Now, with the Fed hinting at a potential rate cut in next month’s policy-setting meeting, the outlook for this sector is starting to brighten once again. In fact, in a recent technical analysis note, Oppenheimer pointed out a bullish reversal in the Real Estate Select Sector SPDR (XLRE), which is up 8.1% YTD, and 16% over the past three months.
