With fears fueled by trade war-inspired tariffs levied against China, Wall Street has been on a roller coaster ride as of late. On July 14, the ride turned into a free fall with stocks plummeting by 800 points. Some recovered, yet the feeling of instability remains.
Amidst the darkness shined a light. Not as affected by the ups and downs that come with uncertainty were stocks that all had something in common.
The Real Deal looked at a sampling of real estate service firms involved in investment trusts, mortgages, and brokerages. Out of 28, 15 were a part of the precipitous dip before recovering and actually increasing their value. One company saw a 2.29 percent gain while other non-real estate stocks struggled to recoup their losses.
The Real Estate Select Sector SPDR Fund is an index that tracks investment trusts and management and development companies. They noted trading was up one percent on Wednesday’s cataclysmic drop.
The S&P 500, Dow 30 and Nasdaq seem to have somewhat stabilized for now. A rumored interest rate cut could bolster stock values.
While some publicly-traded companies emerged from the rubble – including real estate businesses who were not as lucky as their peers – the industry had a semblance of stability during an unstable week. The numbers show that investors remain confident. Real estate stocks continue to be a good place to put their money, particularly over the long term when they could be facing more perilous times.
Perhaps the best insight on real estate stock "ups and downs" can be found by speaking to an experienced attorney.