There is a widely held consensus that a rising interest rate environment means trouble for bonds and fixed income instruments alike. Interest rates are currently poised to rise in 2014 with the US economy stabilizing and the Fed tightening up monetary policy. Real Estate Investment Trusts (REITs) have been lumped into this basket of securities to steer clear of in times like these. However, closer analysis shows that REITs do have the ability to outperform when interest rates are gradually rising.
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