One Way to Hedge Inflation: REITs

One way to hedge a high inflation rate is to invest in REITs. Dividends can help offset some of your higher costs. This is touted all over at this time, but don't throw darts at random REITs. And to be honest, chances are your small fund manager could probably use your guidance if you're well-educated on the markets.

The same due diligence is required for any investment even if you are only investing for the dividends. The share price doesn't matter as much as the company's Income, but good Income for high dividends comes from a strongly managed company, as always. This is important because you'll hold the position for a while.

Start with the technical analysis to pick the REITs you'll research further. We do this at TechniTrader by starting with our scans, which look for improvement in the trend and also our large-lot indicator set.

Example: NVST came up on TechniTrader scans today because it's attempting a bottom at a previous buy zone which is at the lows of a long-term trading range and it has improving indicators, technical and fundamental. All good there to start more fundamental analysis, but solid risk analysis requires confirmation of that bottom fully developing before taking action.


Next, we check the TechniTrader fundamentals, which focus on how strong the institutional holdings AND holders are, the most important financial metrics and more.

If all is good there, then we put the stock on a watchlist to wait for the chart patterns to set up for the best entry and risk to profit profile.

For all investing and trading, a step-by-step plan for confirming when execution takes place once you've done the work to pick the best opportunities is the difference between the retail crowd and the professionals who make a living in the markets.

Happy TechniTrading!

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