In every down market cycle, certain sectors and their stocks develop intriguing price discounts along with high dividend yields. Prudent investors must decide whether to buy the proverbial “blood in the streets” or to pass on the “falling knives.” Each investor has their own risk-reward tolerance that guides them accordingly.
Real estate investment trust (REIT) stocks in particular have been a much-maligned sector of late, with many of them down 20%, 30% or more from their November 2021 highs. Some of this is justified as higher interest rates historically have pummeled the REIT sector, but many stocks appear to have been trashed more than is necessary.
