Over the past two months, real estate investment trusts ( REITs ), whose performance closely aligns with the direction of long-term yields, have been on fire. I’ve talked about REITs in the past as potentially being winners now that we are in an interest-rate regime shift, but I also recognize that the broader macroeconomic backdrop remains uncertain and challenging. Real estate has historically been sensitive to interest rate movements. Lower borrowing costs also incentivize businesses to expand operations and invest in commercial properties. Conversely, rising interest rates can dampen demand for real estate, making it less…
