Shorts Move Into REITs at Record Levels

Updated from 1:47 p.m. EDT

Short interest in REIT stocks is nearing an all-time high, which has some long-term investors in the sector saying the group may be setting itself up for a technical bounce.

Given the stock market's wild of late, however, gauging where the stocks are heading is no easy task.

Short interest on the U.S. MSCI REIT Index is at 10%, compared with 4% for the entire New York Stock Exchange, according to data compiled by Bloomberg. Investors who sell stocks short profit from declines in the share price. ...