A Seasonal Trend in Real Estate Stocks

  • SumoMe

Under the category of “This is Not a Recommendation, Only an Informational Tidbit” (Note to Myself: Come up with some better categories), keep an eye on real estate stocks in the weeks ahead.

A Seasonal Trend of Note in Real Estate Stocks

A bullish time period for real estate stocks begins at the close of trade on the 14th trading day of November (this was 11/20/13 this time around) and extends through the 21st trading day of December (12/31/13).

Figure 1 displays the growth of $1,000 invested in ticker FRESX (Fidelity Select Real Estate) during this time period every year since 1989.

FRESX Figure 1 – Growth of $1000 invested in Fidelity Select Real Estate (FRESX) 1989-Present during Bullish Seasonal Period

FRESX has advanced 20 times during the past 20 years during this time frame, or 83% of the time.

Other potential investment choices beyond FRESX include:

Ticker VNQ – Vanguard REIT Index

Ticker IYR – iShares Dow Jones Real Estate ETF

Ticker URE – ProShares Ultra Real Estate ETF (2 x leverage)

Ticker REPIX – Profunds Real Estate mutual fund

Will real estate stocks rally this time around?  Only time will tell.

Jay Kaeppel

Please find below a complimentary link from MTA (Market Technicians Association) to an archived version of my 11/20/2013 webinar titled “Finding Exceptional Opportunities with ETF, Options and Seasonal Trends.