Even though the economy is still recovering from a pandemic shutdown, there are plenty of opportunities for us to get big returns.
Just look at the ProShares Ultra VIX Short-Term Futures ETF (BATS:UVXY) – this ETF just went from $4 to $40 overnight.
But sometimes, big gains come in boring investments.
And my technical charts are all pointing to one “boring” investment that is consistently outperforming the market.
I’m talking double, or even triple, the profits that regular stocks are giving us.
Consistently outperforming the market during a pandemic is one thing, but this investment has always been a steady performer… and that’s what I’ve got for you today.
Right now, the real estate investment trust (REIT) market is firing up for all the right reasons.
After more than a year, the world is finally returning to normal, and it’s causing the REIT sector to soar.
Whether it’s retail, office space, manufacturing facilities, or residential properties… almost every area of the REIT sector was handicapped by the economic shutdown.
But as society opens back up, all these stores and facilities will too, and it will cause the REIT market to rally higher.
The second reason that REITs are beginning to fly is the economy.
Investors are weary of higher interest rates, which would lead the government to try to curb inflation with even more unpredictable economic policy.
Although interest rates are climbing, they probably won’t soar through the roof.
Higher interest rates are the kryptonite to growth stock returns, which is one reason that we’re seeing underperformance from the NASDAQ 100 Index so far this year.
Year to date, the NASDAQ 100 has returned 6%. That’s right, the index that houses companies like Facebook (NASDAQ: FB), Microsoft (NASDAQ: MSFT), Google (NASDAQ: GOOGL) and Netflix (NASDAQ: NFLX) has only returned 6% since the calendar turned to 2021.
Much of the lack of return in the NASDAQ 100 comes back to the fear of higher interest rates, which have historically deflated technology and growth stocks.
The thought of that rising inflation has investors migrating to other sectors in the market, including the iShares US Real Estate ETF (NYSE: IYR).
My recent volume scans are showing that volume to the IYR component companies has been on the rise for the last month, corresponding with the timeframe that higher interest rates have become more of a “hot button,” putting the REITs in the crosshairs of the bulls.
Here are the two REITs at the top of my buy list:
CJ’s TOP REIT #1
Innovative Industrial Properties, Inc. (IIPR)
The cannabis trade is coming back.
And the IIPR focuses their REIT investments on the dispensary market.
The stock is breaking above its 50-day moving average to break a three month intermediate-term bear market.
With 3% yields and 25% growth potential, I’m targeting a price of $230.
CJ’s TOP REIT #2
HCA Healthcare, Inc. (NYSE: HCA)
Healthcare facilities are reopening.
Although this pandemic has caused significant changes in the medical field, it isn’t changing the long-term business model of HCA.
Changes in the medical field as the result of the pandemic are not changing the business of HCA over the long-term.
Earnings and growth have also been steady, pushing this REIT to new highs.
What’s more, my technical charts are showing high short interest for this stock.
This means that short sellers will be joining the buyers soon, pushing shares even higher.
The REITs have proven themselves the breakout sector of 2021.
They’re currently outperforming stocks, but they aren’t the only investments that are seeing new highs.
I’m currently watching all sorts of different assets, waiting for a great time for us to get in.
So, tune in to my next Straight-Up Profits article to see how to position yourself for big profits this summer.
Until next time,
— Chris Johnson
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Source: Straight Up Profits