Most traders don’t realize this, but REITs provide protection from inflation. Wednesday’s Consumer Price Index data confirmed that inflation isn’t going anywhere anytime soon.
I mean, the housing market gained more value in 2020 than any other year since 2005!
But with interest rates set to rise — and with home prices out of reach for many Americans — most people will experience some trouble. However, savvy investors see this as a profit opportunity.
I don’t see interest rates spiking aggressively, but the stock market, which prices things in long before most people do, will begin to focus on apartments… condos… or anything besides single-family homes.
That’s why I’ve decided to give away a few REIT inflation plays my viewers can take advantage of as demand for apartment building rentals increases in the coming months — and possibly even years!
2 REIT Inflation Plays to Get in on Now
This probably won’t come as a surprise to you, but 52% of Americans between the ages of 18 to 29 were living with their parents in July 2020 — that’s a 5% increase from before COVID-19 took the world by storm.
And according to CBS, the average American can’t afford a home in 70% of the country!
In other words, only 54% of Americans can afford a home right now. And that number will continue to decline rapidly, especially if we don’t get control over the pandemic.
With interest rates set to rise, I see the number of home buyers declining. Or many people could be forced to sell because they have adjusted mortgage rates, which could double their payments in a matter of months.
If you look at most REITs focused on the residential market and building rentals, you’ll notice that most of them are trading within 10% of 52-week highs.
When an entire industry or sector is trading in that range, it’s something you want to pay attention to.
So make sure you check out my short video below and these REIT inflation plays.
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P.S. While he’s helped thousands of people with his recommendations, there are some trades that Future of Wealth Head Trader Lance Ippolito’s members can’t get in on.
And he feels guilty… But the reality is that price action is volatile.
Sometimes things move too fast.
But he began wondering if there might be a way to fix that and get traders in on his moves even faster.
And he came up with the Daily Profit Challenge.