Early on Friday morning real estate stocks began to get hammered and Stock Traders Daily recommended to its clients that if they were interested in shorting real estate stocks that they buy the double short ETF for real estate (NYSEARCA:SRS). Here's the real time trading report for SRS.
The economy is not nearly as solid as the facade makes smaller investors believe, prices in virtually all asset classes have been falsely inflated by stimulus, and that includes both the stock market and real estate prices. A correction may have already begun, according to Thomas H. Kee Jr., and although Friday's trading session was not complete at the time this article was written, the markets were threatening to confirm a reversal that could lead to a market crash.
For investors in buy and hold strategies who refuse to protect themselves, the outlook is grim, and for investors in real estate who believe that real estate prices will continue to increase even after stimulus dollars erode, they have another thing coming.
When false money dries up asset classes like the stock market and real estate get hurt, when the needle dries up impact on those asset classes can be much more severe than the falsified growth influenced by fake money, and that is what bubbles are made of.
According to Stock Traders Daily, the economy is on the verge of reverting back to its natural condition, which, as defined by The Investment Rate, is substantially weaker than where it is today.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure: By Thomas H. Kee Jr. for Stock Traders Daily and neither receive compensation from the publicly traded companies listed herein for writing this article.