Jerome Powell Just Launched REIT Season, Here Are 3 Top Buys

Group 1 - The article discusses the recent speech by Mr. Powell at the Jackson Hole symposium, where he defended his previous stance on inflation being transitory and indicated a shift in policy direction [2][5] - The Real Estate Investment Trusts (REITs) sector is highlighted as having a bullish technical setup, with the Real Estate Select Sector SPDR ETF (XLRE) experiencing an 18-month breakout to new highs [5][6] - REITs are entering a rate cut cycle at relatively depressed valuations, with construction starts at decade lows, which is expected to enhance landlords' pricing power [6][12] Group 2 - The article emphasizes that REITs are currently the cheapest relative to global equities in the past 20 years, making them an attractive investment opportunity [11] - The performance of specific REITs is discussed, with American Homes 4 Rent (AMH) showing strong growth in dividends and occupancy rates, and CubeSmart (CUBE) performing well in a tight market [15][26] - Easterly Government Properties (DEA) is noted for its strong balance sheet and recent lease renewals, which have improved its outlook despite previous challenges [27][34] Group 3 - The article concludes that being overweight in REITs is a strategic move in the current market environment, as the sector offers significant value and risk-adjusted returns [35]