kdo

Could I Really Be Wrong About REITs?

My only fear with shorting REITs is when I do a cap rate calculation on houses in my area. Probably in the neighborhood of 3.3%. REIT managers are business people though, so the stupidity can't reach those levels, -- right!? The experience of Tiger blowing up on the right side of the trade always gives me caution when trying to short. All it took was one time and history has numerous examples of markets that probably would have defeated me at some point.