Exchange Traded Funds
Unbelievable... looks like I need to change the time frame on this to 3 years!
Although inflation may raise the price of property, this is likely to be offset by higher interest rates and higher property taxes. This week anything with bank, home or real estate in its name has had a nice speculative rise as optimism about a real estate recovery is making a paper recovery in this sector of the stock market. When default rates go down and home prices rise, then the optimism will be justified.
Based on my call that the rally is going to see a pull-back over the next few weeks I am giving all Bear ETFs a thumbs up and all Bull ETFs a thumbs down in the short run. I am only invested in a small sampling of these bear ETFs but in order to raise my CAPS score I entered several here.
Commercial will have a good 09 ...lol just as good as financials in 08 ...going down
Hahahaha... Commercial Real Estate eh? Uh, yeah.Time to hop on this one guys. SRS is the ultrashort, and I suspect it breaks $150 by the winter.
Commercial real estate lags the real world. The IYR has a very ugly chart and will continue to fold under the pressure of the subprime crisis. This is a read inbetween the lines stock...buy back in the 40's...after riding SRS up...Nuff said
Commercial real estate should feel pressured over the next few quarters. Can't imagine this ETF not making new lows over that time.
Armageddon for finance stocks.
You know why this will underperform and if you don't know you will find out soon enough.
commercial real estate
Real estate boom caused underwriting standards to go down the toilet. Unjustifable cap rates, and growth rates going into commercial properties. Tons of deals with full term IO mortgages is going to leave less to recover when the defaults start rolling in.
Welcome to the subprime fallout...Time to buy books on how to purchase foreclosures.Longer way to fall down.
need a bigger container
The iShares Dow Jones U.S. Real Estate Index Fund invest in the real estate sector of the U.S. equity market as represented by the Dow Jones U.S. Real Estate Index. There has been a slowdown in the growth of United States real GDP along with a cooling housing market since attaining their peak levels. Sales of both new and existing homes have dropped sharply. Inventory of unsold homes has soared, and the number of single-family and multifamily housing starts has fallen.Solid growth prospects rest with the companies that engage in land development involving properties in supply constrained major metropolitan markets. However places like Florida and Atlanta that have lower barriers to entry might suffer from oversupply and overbuilding due to cooling of prices. Residential real estate market is expected to remain soft as opposed to the commercial real estate market. Reflecting the same, as of February end the strongest performers have been the retail and shopping mall REITs with a return of 10.9% and 14.4% respectively with worst performance put forth by home financing REITS with a negative return of 12.2%.Analyzing the past returns of the fund, it has put up an excellent show with average annualized return for the past five years at 22.56%. Apart from this it has improved the expense ratio from 0.60% to 0.48%. However there is a general feeling that the individual components of the fund are trading above its fair value with an exorbitant price to earnings ratio or a high price to book ratio. The ETF seems to be a good candidate for the long term. It looks better to avoid the fund for the time being as there are much better and cheaper options in the category
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