Oil Vs. Commercial Real Estate: One Is A Better Buy Today

Sep. 07, 2023 8:02 AM ET, , , , , , , , , , , , , , , , , , 61 Comments

Summary

  • Timing anything in the markets over the next few months or quarters is extremely difficult, bordering on impossible to do with accuracy consistently.
  • But investors can look at data and trends and surmise the kind of economic environment that is most likely to manifest over the next few years.
  • Over the last two years, oil stocks have massively outperformed real estate stocks, but in the decade before that, the opposite was the case.
  • Is the last two years a temporary anomaly or the new normal? I think it's temporary and about to reverse.
  • Looking for a portfolio of ideas like this one? Members of High Yield Landlord get exclusive access to our subscriber-only portfolios. Learn More »

Change in oil prices

Waldemarus/iStock via Getty Images

Oil up, REITs down.

That seems to be the story of publicly traded real estate investment trusts ("REITs") over the last few weeks. A rising oil price makes it more likely that headline CPI numbers stop falling or

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This article was written by

20.43K Followers

Austin Rogers is a REIT specialist with a professional background in commercial real estate. He writes about high-quality dividend growth stocks with the goal of generating the safest growing passive income stream possible. Since his ideal holding period is "lifelong," his focus is on portfolio income growth rather than total returns.

Austin is a contributing author for the investing group High Yield Landlord, one of the largest real estate investment communities on Seeking Alpha, with thousands of members. It offers exclusive research on the global REIT sector, multiple real money portfolios, an active chat room, and direct access to the analysts. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ARE, CCI, CPT, MAA, REXR, VICI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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