REITs
The REIT sector has been in turmoil since interest rates were raised at their fastest pace in history back in 2022. Coupled with soaring inflation, many REITs came under pressure and saw their distributable income shrink because of higher operating and finance expenses. Distributable income also declined in tandem, causing distribution per unit (DPU) to fall. Investors started to shun the sector because of its persistent underperformance which has continued into 2025....Some investors prefer to use a top-down approach to find suitable investment candidates.
“Top-down” refers to the search for industries or sectors and then zooming in on the companies with them.
This method can be effective if your search drills down into beaten-down sectors that investors are pessimistic about.
By going through the stocks within such sectors, you may find attractive bargains that you can potentially add into your investment portfolio.
Here are three sectors where investors can sift through bargain stocks.