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Wednesday, August 7, 2019

Jefferies gets bullish on real estate

Jefferies strategist Steven DeSanctis goes overweight on real estate for the first time in his career, explaining in a note that “interest rates around the globe are NOT going anywhere and US rates are tethered to the global markets and thus heading lower.”
10-year Treasury yield fell by 8 basis points overnight to 1.63%.
“Quest for yield can be quenched by real estate,” writes DeSantis, who has worked in financial services since the late 1990s.
Jefferies real estate analyst Jon Petersen favors industrial and apartment real estate plays like Rexford Industrial Realty (REXR -0.5%), Stag Industrial (STAG -0.1%), and UDR (UDR -0.7%).
REIT ETFs: VNQIYRRQISCHH

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