IYR: Cool Inflation Prints Bode Well For Real Estate Stocks

  • Inflation data came in below expectations, supporting the case for lower Treasury yields, which is typically positive for real estate stocks and IYR. Despite recent underperformance and tepid momentum, I see IYR's current weakness as a buying opportunity given potential easing in interest rates. IYR offers portfolio diversification, a solid 2.5% yield, and trades at a reasonable valuation relative to historical averages and the S&P 500.