REITs typically underperform during this period of weak seasonality
The month of September is, infamously, a period of weak seasonality for the stock market. According to Dow Jones Market Data, the Dow Jones Industrial Average (DJI) finished the month higher just 41.7% of the time dating back to 1987, while the S&P 500 Index (SPX) rose only 44.3% of the time since 1928. In addition, the indexes averaged a monthly deficit of 1.1% and 1.2%, respectively.
One of the most unfavorable stocks to own in September is real estate investment trust (REIT) American Tower Corp (NYSE:AMT). In fact, AMT tops the list o Schaeffer’s Senior Quantitative Analyst Rocky White’s worst SPX components this month. AMT hasn’t had a single positive September in the last 10 years, averaging a 6.1% drop.
With five REITs on the list, it may be best to just avoid them in general this month. AMT was last seen up 2.8% at $230.24, however, fresh off its second-straight monthly win. The equity also hit an Aug. 5, 52-week high of $236.13 and is up 6.4% this year.