Eye Forget

Are High Yielding aMREITs Ready to Run?

"manage the risk of a flattening yield curve"

This is the key to dividend security in these stocks. My belief is the yield curve will widen in the near-term and begin to flatten later. However, even once it flattens, there will be an unusually high spread remaining.

The short end will remain low as long as the economy is sluggish and there are concerns about any deflation. The long end will come under increasing pressure as China redirects it excess funds internally and the Fed starts printing more money (as they are the only buyer left than can fund the deficits).

Good article.

Are High Yielding aMREITs Ready to Run?

Other should understand this is one person's opinion of something he admittedly does not understand. One might ask the question how an investment with the implicit guarantee of the USG can blowup. A rather simple question that appears absent from this comment.


On Jun 28 09:09 AM David Van Knapp wrote:

> Very good article, thanks. I am not an expert in aMREITS, but while
> I was reading the description of what they invest in, and considering
> myself as a possible investor in them, I couldn't help but think
> that this is the same kind of thing that blew up for so many banks
> and led to the banking/financial crisis we are in right now: Leveraged
> bets on packages of mortgage-backed securities with hard-to-believe
> returns.

Are REITs a Good Place to Hide from Inflation?

Your article asks a lot of questions, takes few positions and explains nothing. XRE is down about 50%. I assume this is your dollar hedge?