With expectations that the Fed will delay an interest rate hike to late 2015 or later, a good play for the present low-yield environment could be shares of real estate investment trusts, analysts and history suggest.
CNBC looked at the 23 periods of time since 1980 when the 10-year yield was between 1.5 and 1.99 percent while stocks outperformed the market. The 10-year yield was at 2.16 percent on Monday down from 2.97 percent to start the year. Many strategists see that lower trend continuing into 2015.
Some of the strongest performers on the Russell 2000 during periods of low interest rates were REITS as investors gravitated to the sector for their high dividend payouts, according to the analysis using Kensho, a quantitative analytics tool used by hedge funds.
Healthcare Realty Trust traded higher during 86 percent of those low-rate occasions, with a median return of 1.6 percent. STAG Industrial, an industrial REIT, traded in the green 82 percent of the time with a median return of 1.8 percent. Commercial property operator Whitestone REIT traded positive 82 percent of the time and had a median return of 1.3 percent.