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A graphic look at the rotation into neglected sectors - Energy (XLE), Discretionary (XLY),...

A graphic look at the rotation into neglected sectors - Energy (XLE), Discretionary (XLY), Cyclical (FCL), and Retail (XRT) are all moving higher the past few sessions, while the popular mREITs (represented by NLY), Utilities (XLU), Pharmaceuticals (IHE), and Staples (XLP) all sell off.
Comments (4)
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    Under performing fund managers buying at the or near the top, like usual.
    7 Aug 2012, 02:25 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (1891) | Send Message
     
    The market never ceases to amaze me. We are focused here on REITs and how to make [not lose] money with them, as with the nutty world we live in defies all sense of investing, turns day to night and up to down, and making money can be harder than sailing thru a hurricane.
    But, keeping your eye on the prize will win the day. People are buying and selling real estate in all forms. They mostly need mortgages and interest rates cannot go up for the foreseeable future.
    So far, I believe I am on track. So, doing your due diligence if your REIT is 'okay', as a business, and you would buy it today, then stop cleaning a clean rifle before you screw it up.

     

    I held CIM thru the storm, tiller a-mid-ship, eye on the facts, ( NOT ONE FACT EVER SURFACED SHOWING CIM TO BE IN TROUBLE, NOT ONE. ONLY SPECULATION. I gave it long and hard thought and kept it. Acutally averaged down. So for the next two quarters, I get a nice dividend approaching 17% [using my buy average]

     

    Now, NLY, has gotten a bad vibe with earnings down a smidge and it sells off pretty well dramatically last coupla days. I am well diversified but sure would buy more if I was in need. I think with PSEC, (not a REIT is a BDC) ARR, CIM I may just sit with those for now. BUT NLY begs to be bought here.

     

    Don't be 'fraid winds dropping and sun coming back out.

     

    Capt. Brian
    The Lost Navigator
    7 Aug 2012, 02:26 PM Reply Like
  • Mrnomad
    , contributor
    Comments (321) | Send Message
     
    So Capt, you believe the story is still intact and NLY is just suffering a momentary pullback? Eh? My strategy with NLY has been to wait for < 16 and sell OTM puts. When it rises > 17, buy back my puts. I am in NLY < 50% of the time (less time on the ocean equates to less risk) and earned more than the div. I watch IV and Fractals as indicators plus Capt Bernanke.
    7 Aug 2012, 02:46 PM Reply Like
  • kingdad
    , contributor
    Comments (849) | Send Message
     
    Run up on a couple of them is due to nothing mo0re than speculation that the Fed and hopefully the EU will actually do something positive in the near future that will make a difference. Not too likely short term.
    Intermediate term some things will get started but their effects will take some time to be seen and felt here at home. Then factor in the likelihood of more EU problems and no quick fixes when the Congress reconvenes in Sept and again in Jan. so I'd be preparing for the next leg down when the so called fixes Fail the short and intermediate timetable tests.
    7 Aug 2012, 04:37 PM Reply Like
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