Retail sales slumped 1.2% in September. It was the steepest decline for over three years. This is bad news for retailers. Andrew Snyder says this means investors should avoid retail-related REITs such as Simon Property Group (NYSE:SPG).
Yesterday, Ben Bernanke warned of a drawn-out slowdown for the economy. He also said the housing market “continues to be a primary source of weakness in the real economy.” Andrew Snyder says this “weakness” is really a strength.
Think about it this way: we could soon be facing a housing shortage.
Falling property prices and tighter credit markets are putting a stop on construction activity. Buildings — especially in the commercial and industrial sectors — take a long time to put up. So this industry will be the laggard when the economy recovers.
If you don’t own land, Andrew says real estate investment trusts (REITs) are a great way to play the bounce.
But you have to cherry pick.
The retail sector is a nightmare now, but health…