I’m confident that the trend for REITs will be down through the end of 2009. That’s why I suggest buying the UltaShort Real Estate ProShares ETF (NYSE: SRS. Current price $18.52) as a way to profit from weakness in the REIT sector. But fasten your seatbelt! SRS will be volatile!
If you think the real estate industry is finally on the mend, you better check the data one more time. Now that interest rates are on the rise, home prices will have to drop once again. But prepare your portfolio and you will have nothing to worry about.
Businesses across the globe are in conservation mode. While layoffs and headcount reductions are the headline makers, savvy managers are doing much more to protect their bottom line, from cutting inventories to slashing office space.
Tuesday, October 9, 2007 started as a nice day in New York City. A lovely early fall day, with the temperature still a balmy 80° at 2:00 in the morning. By evening, though, the temperature had dropped twenty degrees, the clouds had rolled in, there was thunder and rain. As with the weather, there were some hints of trouble here and there on Wall Street. But all in all, things could not have seemed better. Little did we know, the stormy end of 10/9/07 signaled a very large bubble that had just popped.
The real estate sector has been considered off-limits to most investors during the last year. But according to recent data and indicators, REITs are worth a look.
Perhaps the mishmash of numbers floating around the housing market have you confused. For those who follow the market closely, the daily news seems to bring a never-ending stream of contradictory data.
On Monday it was announced that Homebuilder Sentiment rose again in April, marking the eight-straight month of increases. Yesterday the April Building Permit and Housing Start reports came out, and they both woefully missed estimates.
We’re confused this morning… help us understand this mess.
U.S. housing starts and permits unexpectedly plummeted to record lows in April, torpedoing hopes of a housing market recovery as well as hopes the overall economy is regaining traction.
American home prices just suffered their worst quarter in recorded history.
