Chart of the Day: Boston Properties

Declines usually need a catalyst, and the catalyst impacting the REITs and other interest-sensitive sectors are rising rates. When interest rates go up, there is a negative impact on all groups and sectors.

We saw this last week, as rates surged and a general selloff took place from Tuesday through Thursday.

Expectations had been for rates to remain low or even to see the FOMC lower rates. When this expectation was nullified, stocks were left to re-evaluate the situation and factor in the new information. Higher rates, or the potential for higher rates, mean lower stock prices, at least initially. ...