Why are REITs falling so dramatically in the past few days?

[hendi_alex]

I had moved 100% out of REITs for some time, and only started accumulating in the past few months. On average I'm down about 8%-9% since entering. I doubt that I'll ever totally exit again, but when the headwinds are too great, will likely drop down closer to 5% weighting. Sure REITs have dropped in anticipation, but by historical standards the prices for many, especially the stronger companies, are still quite bloated. A more significant hit will likely come with the first over sized jobs report, and then a second hit will take place when the rate increases are actually implemented. After that, my guess is that REITs will be treated more individually, based upon their ability to turn FFO in a tougher market. That will be one time to cherry pick, and then the next big buying opportunity will come near the end of the rate raising cycle. After cuts are announced will be too late, as prices will already have made a big jump.