2 High-Yielding REITs With Upside Potential

Jonathan Kitchen The market isn’t cheap. Going into this month, the market traded at 21x forward EPS, 1.2 standard deviations above its 30-year average. If we exclude the pandemic, it’s the most expensive market since the Dot-com bubble. JPMorgan That’s bad news. Historically and theoretically speaking, the higher the valuation, the poorer the returns. Using the data in the chart below, at current valuations, the implied five-year annualized return is expected to be below 5%. JPMorgan The good news is t ...