5 categories of REITs physician investors should learn about

A common, critical question looms over various investment markets: When will the Federal Reserve Board (the Fed) start cutting the federal funds rate?

Anticipated cuts in that rate will trigger declines in prevailing rates, lowering the cost of loans for pretty much everyone. Corporations will likely benefit because they’ll pay lower interest rates on their bonds. As corporations would be in better financial shape as a result, Fed rate decreases tend to push up stock values.

Lower interest rates benefit various stock sectors, but few as much as real estate — specifically, landlord companies known as real estate investment trusts (REITs).

So will it soon be worth investing in REITs? Check out this slideshow for a rundown on the status of five major categories of REITs.

Tom Kaiser, CFA®, CPA, and Edward “JR” Humphreys II, CFA®, CAIA®, are portfolio managers and Dave Gilreath, CFP, is a partner and chief investment officer with Sheaff Brock Investment Advisors and Innovative Portfolios®. As of June 30, the firms managed assets totaling about $1.4 billion.

Investments mentioned in this article may be held by those firms, Innovative Portfolios’ ETFs and affiliates, or related persons. There may be a conflict of interest in that the parties may have a vested interest in these investments and the statements made about them.