Sami

U.S. Commercial Real Estate Falls Sharply in March

the index being down will not translate, necessarily, to profit in the SRS. If the market is heading up expect more losses in the SRS, which is down ytd 25%, or on any other reporting period 1, 3, 6, 12 months.

UltraShort Real Estate ETF: The Only Safe Haven for Commercial REITs

The article lacks a closer look at the fundamentals of real estate. Rather it uses non relevant measures of valuation for real esate companies.

Moreover, although retailers have posted weak sales, what does that mean to a retail mall owner? Well, nothing he will still collect rent from the retailer. Retailers are bound by long term leases and they have to pay it as long as they are operational. Tough retail environment means that new space will not be absorbed easily by the market. Then you have to ask yourself have there been overbuilding in the past few years. The numbers suggest there was not any.

The media have linked commercial real estate and residential real estate in one big lot. However the realty is the economics between the two is vastly different.

I would not suggest shorting an entire sector. You have to look at the ones that have a lot of development projects in the pipeline in b and c markets and depend on a lot of leverage. Those are good candidates for a short.