IYR seems to stay at its 52-high while all around it, sector related companies can't keep their head above water. IYR, is the DJ commercial real estate etf, and I wonder if shareholders are delusional.
My biggest concern is that reits need to give back, according to my study, 90% of profits. This motivates them to take on more debt to expand and not conserve in a downturn market. But isn't there a liquidity crunch. If one says that the high end commercial reit is doing well then why is BID TIF SKS doing lousy?
So are they the market leaders in the inevitable rally coming up? Or are people holding on to the last bit of good news in their portfolio.
I mean even the utilities are selling off and they are good dividend payers, selling something that everyone needs, and, additionally, there is expectation for energy growth over the course of time.
Yet do we expect to see the demand that we have had for another shopping mall or strip center?
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