US Residential REITS Locked in Persistent Downtrend

Over the last year, as taper concerns have flared, US residential REITS have struggled.  As a group they have underperformed the MSCI World index by 24% on average.  The chart below shows the relative performance.

All four stocks look like they are locked in persistent downtrends.  Ignat's rule states that a portfolio full of underperforming stocks is likely to underperform.  The best way to confront this truth is to avoid stocks that are underperforming...especially those locked in persistent downtrends.