Not many trading systems have led to winning trades 95% of the time since 1991.
And not many have beaten their benchmark over three-, six-, and 12-month periods, on average.
But the incredibly “dumb” system I’ll share with you today has done exactly that. Let me explain…
This is a simple system for buying real estate stocks – in particular, real estate investment trusts (“REITs”).
I write a lot about stocks… But I personally have more of my financial assets tied up in Florida real estate than in the stock market.
That’s turned out to be a good trade… Property prices in Florida have soared since 2011.
And I’ve more than doubled my money in a few properties.
One simple indicator says there’s more upside ahead in real estate investments…
The main U.S. real estate stock index recently broke out to new all-time highs. And history says it could rise 13% over the next year.
REITs are simple at their core. They own real estate – like apartments, office buildings, or single-family homes – and rent the property out for income.
One great thing about REITs is they pay no federal income tax as long as they pass on at least 90% of their income to shareholders. That makes them high-yield investments… exactly what a lot of folks want right now.
Lately, real estate stocks have been soaring along with the U.S. stock market. The Dow Jones REIT Index recently broke out to a new all-time high.
You can see the major breakout in the chart below…
That’s a fantastic uptrend. But we can expect further gains, too…
History tells us that when this index breaks out to a new 52-week high, it goes on to soar 13% over the next year.
New 52-week highs have only happened 19 other times since 1991. And buying after similar extremes has led to winning trades 95% of the time.
The table below shows the full returns…
REITs have been solid winners for nearly three decades. And buying after new highs, like today, has delivered even better results than normal.
The gains aren’t outrageous. But the 95% win rate is.
U.S. REITs are breaking out to new highs. And that means chances are good that we’ll see double-digit gains over the next year. The Vanguard Real Estate Fund (VNQ) is a simple, “one click” way to take advantage of the opportunity.
Good investing,
Steve
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Source: Daily Wealth