This Asset Class Crushed the Stock Market Last Month. Can It Continue in August?
2026-08-06 08:30
•Matthew Benjamin •The Motley Fool
•••• • Axe Cap view
REITs Outshine Amid Commodity and Tech Volatility
While oil and commodities surged in July, South African REITs offer more stability and growth potential for investors.
July’s 23% rally in oil prices outpaced the stock market’s stagnation, driven by Persian Gulf tensions. Commodities like crude oil often bring quick bursts but come with volatility that’s hard to time. Here in South Africa, Sasol benefits from oil price swings, but it’s a risky play if geopolitical tensions ease. Meanwhile, global tech stocks faltered, and local equivalents like Naspers face variable currency headwinds through USD/ZAR moves. Against this backdrop, REITs — specifically those with exposure to commercial and data center properties — are proving more resilient. These sectors are fuelled by returning office workers and surging demand for data storage, linked to AI trends. South African REITs like Growthpoint and Redefine, though not perfectly aligned with US REITs, share similar dynamics. Their steady income streams and upside from rental recovery make them worth a closer look. We see REITs as a more temperate route than chasing commodity spikes or tech gyrations. this is just our opinion and not financial advice
Trim exposure to Sasol after the oil bounce, watch Naspers for currency-related swings, and add South African REITs like Growthpoint or Redefine for reliable income and growth tied to domestic office and data demand.
- Growthpoint
- Redefine
- Sasol
- USD/ZAR
- Geopolitical tensions ease, crashing oil prices and hurting Sasol
- Rand weakness reduces gains from global tech exposure like Naspers
7/10
Commodities surged 12% in July driven by crude oil's 23% rebound amid Persian Gulf tensions, while the S&P 500 remained flat and tech stocks fell. However, the article suggests REITs may be a more reliable investment, as they've gained 14% year-to-date, outperforming the market. Lodging and data center REITs are leading the sector's recovery due to returning office workers and AI-driven data demand.
Our take is based on reporting first published by The Motley Fool.