TRADE ALERT - Core Portfolio February 2026
Over the past few weeks, most REITs have risen in value, which has made it more difficult for us to identify the next dip to buy.
In fact, they have had their best start to a year in a very long time. They are up by 8% on average in just one and a half months, and many of our top holdings are up closer to 10-15%:
As we have discussed in our recent market update, a reason why REITs are now regaining popularity is that increasingly many investors are becoming concerned about how AI could disrupt a lot of businesses and their stocks.
This has led to capital rotation from disrupted companies like SaaS, professional service providers, trucking companies, etc., into AI-proof asset classes like REITs.
For most of this period, the 10-year Treasury was actually rising, which made this REIT rally especially odd, but it recently dipped back to the low 4s, which should serve as an additional catalyst for REITs going forward.
But we now have a new opportunity to buy the dip as we continue to accumulate larger positions in deeply discounted REITs.
