Speculative Trading in Reits

39 Pages Posted: 17 May 2013 Last revised: 1 Feb 2016

Benjamin M. Blau

Utah State University - Huntsman School of Business

Ryan J. Whitby

Utah State University - Huntsman School of Business

Date Written: 2014

Abstract

The role of speculative trading in markets is often debated. The recent extremes in the real estate economic cycle has created an ideal setting to investigate the role of speculative trading in the marketplace. Specifically, we focus on speculative trading in REITs during the recent boom and bust in real estate. While we find a strong relationship between speculative trading in REITs and the economic cycle, we do not find evidence that speculative trading is related to future returns. Increased speculative trading is apparent in REITs during the boom years, but the level of speculative trading in REITs is unrelated to the negative returns in REITs exhibited after the bust.

Keywords: Speculative Trading, REITs, Real Estate Bubble

Suggested Citation

Blau, Benjamin M. and Whitby, Ryan J., Speculative Trading in Reits (2014). Journal of Financial Research, Vol. 37, No. 1, 2014. Available at SSRN: https://ssrn.com/abstract=2266068 or http://dx.doi.org/10.2139/ssrn.2266068

Benjamin M. Blau (Contact Author)

Utah State University - Huntsman School of Business ( email )

3500 Old Main Hill
Logan, UT 84322
United States

Ryan J. Whitby

Utah State University - Huntsman School of Business ( email )

3500 Old Main Hill
Logan, UT 84322-3500
United States
435.797.9495 (Phone)

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