dwfm20

Ultrashort Real Estate Drop Demonstrates Unlimited Faith in a Recovery

"Simply amazing moves on thesis. Ultrashort Real Estate (SRS) is now at the low for the year which means the inverse index (effectively all sorts of REITs) are at the high. The faith in federal government saving all our commercial real estate is apparently unlimited. Quite amazing."

I too was confused by the valuation of SRS being so low vs. early this year. What I have learned the hard way is that you can only count on the valuation of this for a very short term, and even then it will play tricks on you.

If you look at Ishares IYR, a single weight long ETF tracking the Dow Jones US Real Estate Index, which is supposed to be the same index SRS is double shorting, you will see it is no where near it's high for the year.

IYR close today 38.53, high for year is 71.76
SRS close today 57.19, previous low for the year is 61.00

SRS is great if you hit the timing right in the short term, like a week or less, but a disaster if you think you can buy and hold until the trend comes around.