(Premium) April Real Estate Outlook

It’s difficult to get excited about the Real Estate sector these days. The group broke down to new relative lows whether you’re looking at it on a market cap weighted or an equally weighted basis.

For asset allocators, the relative weakness is clear. With Real Estate/S&P 500 beneath a falling 200-day moving average and the October lows, a negative outlook makes the most sense. In the event that the ratio can reclaim those former lows, tactical investors may be able to capitalize on a mean reversion – just know that any long or overweight position will be in conflict with the primary trend.

One third of the sector set new 52 week lows in March. It’s easy to find downtrends. One name that stands out from the long side is Iron Mountain. It’s near a flat 200-day moving average, which often just leads to frustration and heartbreak. But the setup improves considerably if IRM is above 57.

View the rest of our April outlook:

April Technical Market Outlook 
(Premium) April FICC Outlook 
(Premium) April Information Technology Outlook 
(Premium) April Communication Services Outlook
(Premium) April Consumer Discretionary Outlook
(Premium) April Industrials Outlook
(Premium) April Financials Outlook
(Premium) April Energy Outlook 
(Premium) April Materials Outlook 
(Premium) April Health Care Outlook
(Premium) April Consumer Staples Outlook
(Premium) April Real Estate Outlook
(Premium) April Utilities Outlook 

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