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Please find below a complimentary link from MTA (Market Technicians Association) to an archived version of my 11/20/2013 webinar titled “Finding Exceptional Opportunities with ETF, Options and Seasonal Trends.