Registered: Apr 2002
03-29-03 05:30 AM
See Chapter 12:"Boom or Bust" of the recently published "Practical Speculation" by Victor Niederhoffer and Laurel Kenner.
Lots of good sources, even if you disagree with the authors negative views on REITS as an effective portfolio diversifier. The authors comments are addressed to investors rather than traders but they do highlight some good stuff regarding NAVs. It is commonly understood that Net Asset Values are based on appraisals and not market transactions (this by necessity of course) and so the resulting values are not only smoothed by highly serially correlated and out of step with real market prices. During most periods, the stock price of REITS is lower than their NAV, this tells you what the market thinks of NAV!