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NAR's Lawrence Yun Continues to Mislead on Housing

The Boomer Baby argument is tired. It's the same argument that the homebuilders used to convince themselves and their investors to build -- as it turned out -- too many homes. Judging by the stock prices over all the homebuilders, the Boomer Babies aren't going to save the housing market.

NAR's Lawrence Yun Continues to Mislead on Housing

Rental market to heat up? I don't see it. Maybe temporarily, as rental properties are converted to condos in some cities. But all the extra inventory will ultimately lead to a softening rental market as many of the new condos are converted back into rentals.

Please explain why you see the rental market heating up.

REITs: An Update

I believe much of what propelled REITs since January was the absolutely unexpectedly massive rate cuts by the Fed. That changed the game completely. Now REITs's yields actually look attractive. My concern with holding a position in SRS is that rates are not likely to rise in the near term, so REITs would have to report serious earnings disappointments in the near term for SRS to perform.

REITs: An Update

Toro, you've owned SRS for a while now. Do you realize the nasty value decay that holding an ultrashort hands you? I only realized this after watching SRS for several months. As you wait for REITs to finally admit weakness (at least by their stock prices), your SRS holdings fall in value even if IYR is flat over time.

I think you're right: REIT stocks will ultimately correct. But while you wait to be proven right, your SRS falls further. Maybe shorting IYR is the smarter play -- but there are obvious risks doing that as well.

Are REIT's Fairly Valued?

What about the REITs that are claiming that they have their tenants locked into long-term leases, therefore preventing FFO from decreasing even during a recession?

Are REIT's Fairly Valued?

So what you're saying is that REITs' prices are being helped by the Fed's rate cuts and other recent liquidity actions. Makes sense. But are REIT stock prices only sensitive to interest rates? What events/conditions could bring down those rosy FFO numbers?