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The Best REIT to Buy for 2020: Our top REIT pick could climb to five times its current price – and these shares yield a solid 7.9%, too. Get the pick now…
For those thinking the current environment in the bond market will change, think again.
The latest data on inflation may have affirmed the Federal Reserve's neutral stance on rates, but it did nothing to move the bond market.
What should have been a spike in long-term interest rates was another dud.
In fact, after the release of the data, rates actually declined.
Either the market is broken, or there is a massive systemic change in global economic productivity.
It doesn't matter which. The fact is historically low interest rates are here to stay.
That's bad news for investors searching for yield and hoping rates will eventually return to "normal."
The U.S. Federal Reserve seems to have given up on the idea of interest rate normalization. What we have today should now be considered the "new normal."
And it's best to deal with it accordingly.
And so the search for yield continues. Unfortunately, the number of high-yielding opportunities is diminishing as more and more investors chase down opportunities in things like REITs.
So we have to change how we go about our search.
Instead of simply looking at REITs with already high yields, I'm now looking for REITs with yields that are poised to climb significantly going forward.
The yield may be unassuming today, but watch out – because a much higher yield is around the corner.
And when that higher yield comes, so too will the flood of investors looking for income in a perpetually low-interest-rate environment.
Are there any REITs with dividends that are going up substantially? Traditionally, REITs are not known as growth opportunities.
The best REITs tend to be the ones with stable cash flows. But this is a new normal where growing dividends become more and more important.
What we need is a REIT in a rapidly growing industry.
And that's exactly what I've found for you today…