{5U}

Post-Panic REITs: Most Attractive Valuations in Decades

This article is written by another kid/pundit trying to pick a bottom.

REITs were fueled the 3 biggest sins of the credit bubble era:

-Cheap credit
-Leverage
-Real estate

Pain in commercial real estate typically happens later during a recession. Lower rents and higher occupancies in world where the credit punch bowl is empty and leverage is a taboo will punish the sector.

The bonds may make sense for the stronger players. The stocks are still baking in Goldilocks.

And if the REIT sector does get aid they will end up like the financials. Tighter bond spreads because Uncle Sam is playing Uncle Socialist, but lower stock prices because the growth prospects and business model are impaired in the lower growh, less levered world.