The big loser last month was commodities, which shed more than 4% overall. Meanwhile, REITs continue to rise, adding 1.2% in the U.S. market and gaining 1.0% on an offshore basis. Over the past year, REITs generally are in the performance lead among the major asset classes. Foreign REITs in particular are higher by a strong 24.6% through the end of February 2013. REITs has been on a tear for most of the past 12 months, a strong indication of the recovery in commercial properties - the fact that money is leaving the sidelines and venturing into stocks and properties in the US is a strong trend for a buoyant market in 2013.
By comparison, bonds, US and foreign have been muted, again a show of money exiting bonds. You would think that considering a market rally in equities based on liquidity (thanks to all central banks printing press) would have seen an effect in commodities, the reverse is happening. That is not a good thing as it may mean that the current equity rally is largely a bubble as it is not translating into real activity (i.e. pickup in commodities buying for end products or consumption). A better explanation would that there has been so much excess capacity and inventory for commodities that they will only pick up by June July methinks, same for the precious oil.
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