The danger in owning REITs at this point in time is two-fold: There are risks based on property values plummeting due to a real estate bubble (nature's way of controlling excess, irrational exuberance, etc.) and a credit bubble. Did you know that:
* Real estate loans have expanded at a 14.9% rate during the first 17 weeks of 2005 to $2.67 trillion.
* Interest-only loans climbed to 70% in 2004 from less than 20% in early 2002.
* The current 55 residential real estate boom markets are more than twice the peak of the late-1980s booms
THESE ARE SOME LINKS TO TRACK THE MOVEMENT (TIMING) OF REAL ESTATE INVESTMENTS. IF YOU GET A SELL SIGNAL HERE AND DOWNSIDE TRENDING, THE CASH MARKET WILL EVENTUALLY MOVE IN SYNTHESIS.
CBOE DOW JONES REIT INDEX
AMEX MORGAN STANLEY REIT INDEX
NAREIT EQUITY REIT INDEX STATS
* Real estate loans have expanded at a 14.9% rate during the first 17 weeks of 2005 to $2.67 trillion.
* Interest-only loans climbed to 70% in 2004 from less than 20% in early 2002.
* The current 55 residential real estate boom markets are more than twice the peak of the late-1980s booms
THESE ARE SOME LINKS TO TRACK THE MOVEMENT (TIMING) OF REAL ESTATE INVESTMENTS. IF YOU GET A SELL SIGNAL HERE AND DOWNSIDE TRENDING, THE CASH MARKET WILL EVENTUALLY MOVE IN SYNTHESIS.
CBOE DOW JONES REIT INDEX
AMEX MORGAN STANLEY REIT INDEX
NAREIT EQUITY REIT INDEX STATS
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