Following is a chart from Chart of the Day detailing the historical performance of the NAREIT Index. REIT shares have been in a strong uptrend over the last few years (since 1970!). Are REIT valuations getting ahead of fundamentals?
Chart of the Day notes:
Over the long-term REITs (real estate investment trusts) have actually outperformed stocks. Investors appear to have caught on to this fact and have bid up REITs to new all-time highs. While today's chart illustrates that REITs are well within a long-term uptrend, REITs are currently testing resistance (red line) of a long-term trend channel.
Source: Chart of the Day