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A no-brainer. Put a quarter of your capital into this one and wait until it hits 25, then cover. It will happen. When? I think it will reach the target in late Jan 2009. Real Estate will come back!
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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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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