iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
22,430 Blog Posts

WHAT THE FUCK IS GOING ON WITH REITs?

I don’t need to read research or look at news. Whatever is happening to REITs has happened before, sans the SHARPLY HIGHER cost of capital for a dreadfully capital intensive business. Let’s also not forget bonds are yielding greater than 4%, which competes with some REITs for capital now.

Look back on the IYR and previous crashes, you can see this recent squall might have further downside.

The rapidity of the decline has hastened in recent weeks and borders on a fucking crash now.

Best way to profit from the demise of the REIT is via DRV. The old school method was SRS. I must admit to be somewhat surprised by the manner of this decline, way outperforming XLF to the downside. Typically banks crash and then REITs. For the most part, banks have been awful, but nothing atypical.

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4 comments

  1. roguewave

    Belarus inflation goes to zero!
    Good idea. Mr Magoo should write an executive order to do the same here.
    ยท
    3h
    Belarus President Alexander Lukashenko says he’s banning inflation: “From October 6, all price increases are forbidden. Forbidden!”

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    • roguewave

      Even better, grandma Yellen should expunge “inflation” from the language; just like she did with “recession”
      Inflation, recession – these are no longer words. Alphagoog can erase them from the internets.

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  2. Mr. Cain Thaler

    WFH and high rates coming together.

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  3. bob smith

    REITs borrowed billions at 0% and now must service that debt at much higher rates since cash flow don’t cover it. Simple math points to much further downside for REITs.

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