k_denninger

Insanity Reigns in Commercial Real Estate

I was playing the SRS (ultra-short) a bit ago but saw some technical indicators I didn't like and dumped the position. Good thing, as it has since sold off by 12% from where I exited! Aieee!

Anyway, I'll be back on that one, but not yet. The deal breaker, by the way, may well be the 10y bond yield. Watch that sucker - REAL interest rates are what will eventually kill the liquidity party, as all that debt that gets issued to fund the game has to go SOMEWHERE, and SOMEONE has to pay interest on the money.

The game is getting long in the tooth both here and in the general equity markets.

Check out market-ticker.denninge... if you'd like - another blog analyzing the broader markets on this stuff (mine)