The real estate tell

The market was up on Friday though I do believe it is a fake out due to the fact that real estate, as measured by IYR, was down. And the Nasdaq was virtually unchanged. But as long as GS and GM keep up their out-performance, all is well with the world.

The market is interesting currently (when is it not) because it is financials that are acting strong as is the precious metals and the dollar, and most importantly, the treasuries are surging; usually, these asset classes don't move together. Is this a new paradigm? Or one is a short squeeze, and the other truly in demand?

I would argue that financials and real estate need to go up lock step to signal true demand. Most financially related companies finance or own debt related to commercial real estate, and I assume now, the Fed as well. But no government is going to bail out commercial real estate so if there is true demand it will come from the market place and then seep into the financials since what they are holding will be more valuable.

An aside, I'm looking at the crash in CBG stock, a very good company but loaded with debt, and wanted to know what the bonds were priced at. And wouldn't you know it, the bonds are priced at a premium. That would imply that bondholders are not concerned with repayment but stockholder are worried about bankruptcy. I believe a hedge fund would buy the stock and short the bond in this situation.