...and now comes reality. Broke consumers will not get out their credit cards and head to Wal-Mart to buy more Chinese-made goods. The party is still over, and those fools that jumped into more debt with 'cash for clunkers' and the home tax rebate, will be wiped out as they lose their jobs. There has beeen NO recovery, just an iluusion caused by massive and wasteful government deficit spending. Once again demand has been pushed forward to try to stall the final collapse. Those that bought the mother of all sucker rallies will be crushed.
Bears just need patience here, Dow 6,000 will come faster than anyone can even imagine. When gluttonous consumption doesn't return for X-Mas...look out below. "Black Friday indeed" LMFAO!
Then you need to quit reading all the Uber-Bear blogs where they spread such lies.
And even if they were right - which they're not. You would probably loss money holding SRS:
SRS is fine for a two or three day trade - but that's it.
IYR is off by 50% from the highs. Plus the effect of the dollar falling 20% has to be factored in, so lets say that in real dollar terms IYR is off by 60%. In the worst recent financial crisis, Hong Kong 1997, prices fell by 55%. So we are well ahead of that.
So I fail to see how you can believe that CRE is not priced appropriately. 60% off seems like a big number to me. And the smart folks such as Paulson are buying REITs right now - not shorting them.
The rats really left the CRE ship the last quarter of last year. Sorry you missed the ride on SRS back then. It was great!
What action in CRE???
IYR has gone no where for two months. While SRS, due to slippage and other factors, has dropped 20%.
One could short both SRS and UYG and actually make money. How crazy is that?
"Those that bought the mother of all sucker rallies will be crushed."
Those who bought in March and are now up 100% or so, as I am, will simply have their stops taken out. The true suckers are those who shorted the rally and not only missed the huge gains but garnered huge losses for themselves.
The government is pumping out TRILLIONS. The smart people are those who have been long and are scooping up their share of the loot while there is free money laying in the street.
As least when my taxes are raised, I'll have something to pay for them with.
What about you? How much money have you lost being short since March?