The third quarter was good to REITs and real estate stocks as investors poured money into them in anticipation of forthcoming inflation. The Dow Jones All Equity REIT index increased by 13% in the third quarter. In the second quarter, it declined by 5%. The Dow Jones Industrial Average rose 10.37% in the third quarter. Much of the buying is by investors who believe an inflationary period is coming and see real estate as a hedge, says Paul Adornato with BMO Capital Markets.
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