Following weeks of sell-offs of semiconductor and big technology stocks, investors have increasingly rotated into real estate, drawn by sectors with strong fundamentals, more predictable cash flows, and assets trading at more attractive valuations.
The shift helped make real estate one of the stock market’s best performing sectors during Q2 as the S&P 500 finished its strongest quarter in six years. Hospitality and retail REITs were among the biggest beneficiaries as the S&P 500 added more than $8T in value over the last three months, thanks to a strong showing in jobs and consumer sentiment.​