Not much in the way of changes last week. We still have 30 Green Arrows out of a possible 30. Although the REIT index (VNQ) was our lone decliner last week and is now only a 3% decline from getting a Yellow Arrow.
The decline made some sense as many investors consider REITs a bond surrogate, and interest rates have been on the rise, especially last week. Equity investors can take some comfort from rising interest rates because in our current environment rising interest rates are more likely to be an indication of healthier economies around the world than of growing signs of inflation. A positive for earnings and stock valuations.
