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 care is booming. This makes health-care REITs such as National Health Investors (NYSE:NHI),  HCP Inc. (NYSE:HCP), Ventas Inc. (NYSE:VTR), and Nationwide Health (NYSE:NHP) great contrarian buys right now.

More from Today’s Financial News:

With the markets in a dive and talks of a global recession, it is no wonder the real estate industry is on shaky ground. But why are some experts calling for a major housing shortage?

Last week I wrote about the very real possibility that the real estate market has reached its bottom. This week, the headlines are proving my forecast was dead-on accurate.

Just a few days after investors were wailed by talks of gloom and doom across all arms of the economy, the situation in the real estate market is looking much, much more positive.

In fact, some experts are predicting a serious housing shortage in the not-so-distant future.

Think about it. Right now, there is not one builder out there that is certain of his future.

Over the past five years, business was booming. Now, finding folks willing to invest in building a new home or fixing up an existing home is an ever-growing challenge.

Making matters worse, when a builder does find a willing buyer, the tightening of the credit market makes it nearly impossible for him or his buyers to get the needed cash to start the project.

The market mess is creating a black hole in the building industry. Construction sites are empty. Equipment is gathering dust. And weeds are growing tall on proposed building sites.

Damming the waters

With nobody wanting to build now, it means there will be no new buildings in six months, one year, or even two years. When the economy finally rebounds, the building industry will be a laggard.

That is the best news in a long time for the real estate industry, as it will create a serious housing shortage. Thanks to the market’s horrific downturn and eradication of all new building prospects, we will see a major upswing in the real estate market in less than two years as demand rises and supply shrinks.

The shortage will create all sorts of investing opportunities, especially in the industrial and commercial real estate sector, where new projects often take three years or more to complete from ground breaking to ribbon cutting.

Unless you happen to be sitting on a few hundred acres of industrially zoned land, you will have to find another way to take advantage of the coming boom.

Fortunately, real estate investment trusts (REITs) offer an easy and effective way to take advantage of industry up-ticks. Find the right one (there are hundreds of them out there) and you will get a steady stream of dividend income and the potential for the long-term appreciation the real estate industry is known for.

Is there a doctor in the house?

As I mentioned, the current halt to nearly all new building activity will be most pronounced in the commercial sector. Still, that is a huge section of the market with a lot of great opportunities and some not-so-great opportunities.

Many commercial REITs focus on the nation’s retail-store sector. These investments do great when the economy is rolling, but flat-out stink when the market slows. You can do much better in the world of REITs than investing in retail properties.

The area you need to focus on is the nation’s growing healthcare industry. The huge Baby Boomer generation is getting older. Hospitals are expanding at record paces. And more long-term care facilities are desperately needed.

It is a great opportunity for healthcare-focused REITs like National Health Investors (NYSE:NHI). The company owns over 150 healthcare facilities, consisting of long-term care, retirement homes, and assisted living facilities.

National Health is not alone in this profitable sector. REITs like HCP Inc. (NYSE:HCP), Ventas Inc. (NYSE:VTR), and Nationwide Health (NYSE:NHP) are all major players.

What makes National Health stand above the crowd, especially in a highly unstable credit market like this one, is its very low levels of debt. (Its 8% annual dividend doesn’t hurt, either.)

As of last quarter, the company has just $22 million in short-term debt on its books. Meanwhile, it has over $94 million in cash. That means you will not be hearing of emergency capital infusions or liquidity problems anytime soon. National Health has a very strong balance sheet.

As this market mess plays out and the nation’s real estate industry rebounds, investors will begin to realize there is a serious shortage of newly constructed commercial buildings.

The shortage will raise prices for properties across the industry, especially in the growing healthcare sector.

Do some homework, take a look at REITs like National Health and invest appropriately. In less than 24 months, you will be very glad you did.

Source: Housing Slowdown? Try Housing Shortage!

Even helicopter Ben is worried. He’s told Congress that inflation risks have “intensified” and that there’s now a threat of “significant downside” to growth.

But contrarian investors should be lapping it up, says Marc Lichtenfeld in The Smart Profits Report. A bear market is where bargains are made.

Marc has put together a list of stocks that performed well in during the last bear… and four stocks that are currently battling the bear head on…

Rewind: The Best Bear Market Bets From 2000-2002

When you’re faced with a challenging market, one option is to look for the stocks that historically perform well during downturns. You’ll often find that the companies that not only weather the storm, but thrive during it, are the ones that lead the pack once the market stabilize and heads higher again.

Here are some examples of stocks that held up well during the last bear market, which growled from March 2000 to October 2002. During that time, the S&P 500 lost a whopping 50.4%.

Ventas (NYSE: VTR): Check out these results. While most other stocks were in freefall, Ventas gained a sensational 578% and then went on to post additional gains of 356% at the stock’s high.

THQ Inc (Nasdaq: THQI): Investors who held on to THQI during the last bear were rewarded with a return of 68%. But that pales in comparison to the 178% gains at the stock’s high afterward.

Manor Care: Shares jumped 36% during the last bear market. However, by the time the Carlyle Group bought the company in 2007, its shares had rocketed another 255% since the end of the bear market.

But I imagine you want the best stocks to invest in during a bear market today. Below are a few stocks to look into. They are all trading well during what has been a treacherous market. That should be some indication that their prospects are especially bright.

Fast Forward: The Best Bear Market Bets Today

From solar power, to biotech, to healthcare and hospice services, these four companies are currently battling the bear head-on… and winning.

Canadian Solar (Nasdaq: CSIQ): Shares of this Ontario-based manufacturer of solar modules have skyrocketed over the past year. Although currently 25% off its high, the stock is still well-placed to profit from high oil prices, and with the company having recently raised its revenue outlook, there’s no reason to think that solar stocks will quit any time soon.

Note: Solar power is still a young, up-and-coming industry in stock market terms. Our newly added technology expert Paul Moore is cautious on the sector and I’m sure he’ll have more to say about solar in coming months.

Moving to the healthcare area, several names have recently hit 52-week highs…

Allos Therapeutics (Nasdaq: ALTH): Shares of this biotech company have recovered nicely since the firm’s brain cancer drug failed Phase III trials last summer. At the moment, its leading candidate, PDX, is in Phase II trials for T-cell lymphoma. The company raised over $65 million this spring, so it should have enough cash to fund its research in the near-term at least. Allos is not expected to generate any revenue this year, though.

Amedisys (Nasdaq: AMED): This profitable provider of home health and hospice services is projected to earn $2.73 per share this year and $3.32 next year. However, not everyone is bullish on AMED. Over 26% of the float is sold short. So either the bears know something, or there could be a big short squeeze coming if the stock continues to rise. Note: The company’s earnings report is scheduled for July 29, which should provide more clues.

Sequenom (Nasdaq: SQNM): This genetic and molecular diagnostics company has seen its shares quadruple since April. But the stock really started cooking in June when the company announced very strong results in tests to determine Down Syndrome in fetuses using the mother’s blood. The Down Syndrome testing market is at least $1 billion and if Sequenom’s tests are proven superior, the company could be in the position to grab much of that revenue.

Source: The Best Stocks to Invest in During a Bear Market