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A Silver Lining For MREITs

Mortgage REIT prices have been falling due to the effects of QE3. However, just as price equilibrium is found for stocks as a result of expected earnings, it would seem that equilibrium would be ultimately found for mREITs as a result of expected dividend yields. And while dividends have indeed been cut over the past few quarters, the falling stock prices have propped up the yields so that they largely remain in double digits. The prices of mREITs won't fall forever, and sooner or later should find a bottom that is attended by their trademark high yields. The bottom is always the best place to buy, but somewhere on the way down, or on the way up, is okay, too.