REITs on a tear!

REITs have moved up nearly 20% over the past month in a largely flat market, and it's definitely time to consider taking profits. This is one of the great benefits of owning non-correlated assets -- some make huge moves up while others languish with the rest of the market. With the clarity on the EOP deal and information about SPG's offer to buy MLS, there is a lot of optimism in the sector and I personally believe it's time to take money off the table.

I'm not trying to show my investing brilliance here, but I wanted to raise the flag for others who may own REITs as well. The fact is, they've REALLY outperformed and if you own them, you should at least evaluate your position. (Again, do not consider this investment advice, but just some insight into my actions as a REIT owner myself.)

Check out this chart vs. the S&P for the period after Jan 5th:

That is a gigantic move! Moves like that just aren't sustainable and I'll be closing my positions when the market opens today. If they pull back over the next few months, I will probably buy back in, but I can't see owning them any longer given the risk in the market and this huge move. For what it's worth, REITs make up 6.3% of my portfolio, primarily invested in ICF.