Another Day In REIT Paradise: The Craziness Continues
Dividend Growth Investing, REITs, Value
Seeking Alpha Analyst Since 2009
Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 100,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.
The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. He is also the editor of The Forbes Real Estate Investor.
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He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 108,000 followers (on Seeking Alpha). Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies.Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College and he is married with 5 wonderful kids. He has over 30 years of real estate investing experience and is one of the most prolific writers on Seeking Alpha. To learn more about Brad visit HERE.
- Yesterday was a brutal day for pretty much any stock that wasn’t being shorted.
- We’ve seen worse trading sessions, of course. As everyone keeps telling us, this was only the worst trading day since October 2020.
- What did I tell you yesterday about the game not being over? And I imagine there’s more drama to be seen still….
- Make sure to sign up with iREIT on Alpha! My team and I post the full and detailed news and articles every market day to keep members as up-to-date as we can.
Quote for Today:
“A wildly fluctuating market means that irrationally low prices will periodically be attached to solid businesses.” – Warren Buffett
(Source: A.C.E Adventures – Golubac Fortress)
Yesterday was a brutal day for pretty much any stock that wasn’t being shorted.
We’ve seen worse trading sessions, of course. As everyone keeps telling us, this was only the worst trading day since October 2020.
That means it’s been a mere four months since enough investors panicked to send all three major U.S. indices dropping this intensely. And, of course, it hasn’t even been a year since the Dow dove 7.79% in a single day, the Nasdaq plunged 7.29%, and the S&P 500 lost 7.6%.
That would have been on March 9, 2020. So, all things considered, January 27, 2021 wasn’t the worst ever.
With that said, it certainly wasn’t the best.
We can blame the Federal Reserve’s press conference all we want for that fact. Trading started off on a down note based on bearish expectations for how the meeting was going to go. And when it turned out that negative sentiment was correct, the mauling got even worse.
But ultimately, we just have to accept that the U.S. economy isn’t standing on its own two feet right now. It’s relying very, very heavily on government intervention and higher-authority manipulation for its direction.
This morning, despite more bad news about last quarter’s growth, the markets are all up again today. So we shall see what the rest of the day brings our way…
I already discussed the short-selling situation yesterday morning. And those kinds of actions didn’t stop from there, as evidenced by the winners and losers graphic in the next segment.
Moreover, there might be more pain up ahead. As Yahoo Finance noted, “many on Wall Street [are] wondering if the market hit a short-term top late last week or earlier this week. Such rampant, euphoric behavior” in unloved stocks “have many times in the past been followed by large plunges in the broader market.”
It went on to quote Lori Calvasina, head of RBC Capital Markets’ U.S. equity strategy, as saying, “Yes, things have ramped up on the risk side. It doesn’t pass the smell test with a lot of Wall Street bets.”
And Morgan Stanley strategist Andrew Slimmon went even further in predicting, “I think this is a sign that we are getting to a top and we are going to get a pullback. That’s just one of the signs.”
So what do we do?
If you’re asking me, I’d say the same thing we do during bull runs. We stick with quality.
The World According to Commercial Real Estate
The Daily REITBeat is keeping busy as earnings season continues to roll out.
For example, we now know that SL Green (SLG) reported 11.9% less lease signings last quarter mark-to-market, and 3.6% lower for the full year. However, it did collect gross tenant billings of 94.8% for its larger portfolio – a much more positive note.
Here’s some more information released in the last 24 hours:
- SL Green (SLG) also announced a $500 million increase to its share repurchase program for a total of $3.5 billion. To date, it’s already purchased 32.4 million shares of its common stock and redeemed 1.1 million common units of its operating partnership.
- American Tower (AMT) signed a long-term agreement with Nextlink Internet to bring enhanced connectivity to rural America through collocation plans on over 1,000 tower sites across 11 states.
- Kimco Realty (KIM) initiated five new solar projects, four of which are at its New York City-area properties. Together with a designated Massachusetts facility, these additions should turn 3.7 megawatts of energy into an estimated 4.64 million kilowatts of annual power for recipients.
For more where that came from, make sure to sign up with iREIT on Alpha! My team and I post the full and detailed Daily REITBeat memos there every market day to keep members as up-to-date as we can.
As for the facts and figures up above, what did I tell you yesterday about the game not being over? And I imagine there’s more drama to be seen still…
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