Whats up with REITs and IYR these days? Looks like the biggest bubble around. I stopped buying REITs eight mounts ago, because I thought the housing slowdown, and the not so attractive yields would stop the run. Now I almost laugh when I look at the $reit index. 3% yield on IYR, thatâs ridicules. REITs are supposed to be bought for income. Look at the 10 year chart, one bubble after anotherâ¦
IYR tracks commercial real estate and not residential - many think that commercial real estate will benefit from a breakdown in residential.
Almost perfect correlation between IYR and the Dow Jones Equity REIT index, so there can't be much difference in weighting between the two. I brought IYR in because it was easier to find information about the yield for IYR than $reit.
Could you explain how the breakdown of residential properties gives rise to commercial real estate? As consumer spending goes down , doesnt commercial retail space suffer as well? I have heard this too, but want to see the correlation. Thanks
i dont know... i have no positions in any of this stuff because i dont understand exactly what is going on... it seems like a bad strategy to short housing by shorting IYR which gives a dividend and shorting the homebuilders which have just bottomed... so im out. im not sure how to play a perceived housing bubble.
That's Harry Dent. http://amazon.com/s/ref=nb_ss_gw/00...eywords=harry+dent+bubble&Go.x=0&Go.y=0&Go=Go
Harry Dent makes some interesting predictions. But NASDAQ at 13000 or Dow at 30-40k before 2010 is probably a little bit to optimistic. Buying what is not housing correlated is probably the best way to play a perceived housing bubble. I chose to buy bonds back in April when I anticipated the housing slowdown. Bought QQQQ in May, June and July, a little to early, but if NASDAQ hits 13000 im prepared