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S&P 500: 1,340.35 Change: -0.84%
pjgenot
P&P Score: 4.73 | Points: -38.41 | Accuracy: 67.86 | Average Pick Score: 18.19   Annual Return: N/A  
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Commentary
BUY: ULTRASHORT REAL ESTATE PROSHARES (SRS) Rating: 1
Start Price: $319.05
Points: -134.24
Created: 05/08/2009
The other shoe in the real estate collapse is dropping. First came housing. Next up? Commercial real estate.

Proshares Ultrashort Real Estate (SRS: AMEX) benefits when the value of commercial real estate stocks go down. I think we will continue to see tight credit conditions as banks invest in less risky assets like Treasuries and agency mortgage-backed securities. I certainly don't think they will write a bunch of new commercial real estate loans.

Plus, if they do make some commercial real estate loans, you can expect lower loan-to-value ratios and higher interest rates.

SRS is currently trading near it's 52-week low. Looks like a good time to get in.

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