39 Pages Posted: 17 May 2013 Last revised: 1 Feb 2016
Date Written: 2014
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: 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