Open AccessA Note on the Early Effects of the Brexit and US Presidential Votes on REITs
Author(s) -
Mark Schaub
Publication year - 2020
Publication title -
international journal of economics and finance
Language(s) - English
Resource type - Journals
eISSN - 1916-9728
pISSN - 1916-971X
DOI - 10.5539/ijef.v12n6p14
Subject(s) - brexit , surprise , real estate investment trust , economics , index (typography) , monetary economics , event study , financial economics , presidential system , international economics , political science , finance , geography , real estate , politics , law , psychology , social psychology , context (archaeology) , archaeology , european union , world wide web , computer science
The votes for Brexit and the US President that occurred in June and November of 2016 took some investors by surprise. Markets reacted around the world with some countries, currencies and industries being affected more than others. This note finds US REITs significantly outperformed the S&P 500 market index on the day of both elections. However, during the event windows starting 5 days before each vote until 5 days after, results are significant but mixed. These results may indicate REIT investment returns are uncorrelated with market index returns influenced by certain national events.