Back on June 28 of this year, I suggested to readers here that they may want to look more closely at high yielding agency mortgage backed real estate investment trusts (AmREITs). I pointed out in the article that as a group, a divergence between AmREITs and the S&P 500 index ETF (SPY) had developed during the previous two weeks.

The grey vertical line just before July 9 on the chart below is the point in time when I asked the question, “Are high yielding AmREITs ready to run?” Looking back, it is now clear that this divergence was sustainable and AmREITs were indeed “ready to run.”