REITBull

Time to Pick Up the Pieces of the Global REIT Thud

I agree that CRE has some pain to face ahead. There will be a correction in values as lenders push LTV's lower and the consumer continues to be weak. Many REIT's are highly leveraged with short term debt. However, alot of these loans will not come due in the coming year. It is risky to be long REITs, but I feel that equity traders will oversell this sector. Do not get me wrong, I am bullish on REITs at their values traded this past week. I do not believe they will return to their 2007 values anytime soon nor will I be a buyer if they continue to rebound as they did late Friday.

Time to Pick Up the Pieces of the Global REIT Thud

I recently sold off my bear position in REITs and bought URE. It may not be a good comparison but URE is trading at close to the same price as XHB, which tracks homebuilders. This tells me that URE is oversold or XHB is overbought. Commercial real estate will recover before residential so I am long URE at these prices.