Real estate stocks have been lagging the market due to concerns about rising interest rates. However, with long-term Treasury yields stabilizing in the 2.95 – 3.20% range, we see a new opportunity to look at the real estate sector.
The chart shows that the Fidelity Real Estate Fund (FRESX) broke out and cleared its 100-day moving average, which we use as an indicator of seasonal trends.
International real estate looks even more attractive, as the long-term bullish trend continues to be in place:
The long-term bullish trend of the Fidelity Real Estate Investment Fund (FIREX) remains intact.