Black Swans, Real Estate and Financial Stocks [View article]
I really appreciate G.Considine's essays. Sometime late last spring, there was an article/posting on SA about the unreasonably low yield of REITS (their prices having risen, and their dividends remaining, not 200 bp above Treasuries, but 200 bp BELOW!) Fair value was estimated at 40 -60 % below their market pricing of that time. At that time I sold off a fewer of the weaker ones. I had no idea of SIVs, had not purchased any CDO's, etc. I think the clue to the turn in the market's fundaamentals (in the U.S.) lay in that peak or bubble ... after the physical real estate bubble had been identified in late 2006.
-
I really appreciate G.Considine's essays. Sometime late last spring, there was an article/posting on SA about the unreasonably low yield of REITS (their prices having risen, and their dividends remaining, not 200 bp above Treasuries, but 200 bp BELOW!) Fair value was estimated at 40 -60 % below their market pricing of that time. At that time I sold off a fewer of the weaker ones. I had no idea of SIVs, had not purchased any CDO's, etc. I think the clue to the turn in the market's fundaamentals (in the U.S.) lay in that peak or bubble ... after the physical real estate bubble had been identified in late 2006.
Jan 02 19:53 pm
|Rating:
0
0
All Comments by d_teller »Black Swans, Real Estate and Financial Stocks [View article]