Be selective on REITs On 26 Jun 2012, we discussed the correlation between the FTSE ST Real Estate Investment Trusts Index and FTSE STI Index and the possibility of yield compression. Back then, there seems to be a correlation breakdown. It moves from a high of 0.99 (in 2008) to 0.35 (at the point of our discussion). For the past few weeks, I believe the correlation would have improve. As you may have noticed, there are increasing number of analysts' report coming out to discuss about yield compression. Looking at the chart, there is a possibility of the Index testing its 720 levels. Likewise, a move below 680 may indicate the possibility that this yield compression story may have being factored into the market. I think that there is some more leg to the upside, but one needs to be selective. Not all the 24 stocks used in the ......