{5U}

REITs: Could It Be Time?

Check the bonds. Best in breed vno and spg are trading at stressed or distressed yields general growth properties debt trades at 26 cents. 29 billion of REIT debt comes due next year. Access to capital is expensive or unobtainable. Defaults would force sales in a market with little liquidity.

So although these companies may have printed some decent numbers, that is backward looking. Going forwatd, This sector will be challenged by headwinds of a distressed credit market and slowing economy.

This is simply a Santa bear market rally with little participation from the credit market.

I'd listen to what the bonds are saying, not technical analysis on a stock chart.