Copper is skyrocketing. New Jobs report next week will be near 200,000 a new record in this recession recovery. Interest rates will soar. Buy some TBT for easy play this is going to $300 next year, it is trading in the high 70's.
There are people that think there is value. In 1970's when the Mortgage REIT's were in a bubble, the sell off started in 1975 after a very mad rush from IPO's, the industry grew from 20 mil. to 20 Billion in two years, there were SPO's and IPO's every other week for 2-3 years, I bought my first M-REIT in 1972, Atico Mortgage Investors, IPO price 17.50, opened at $20 and my limit order was $20.375 (20-3/8 in those days). Those were the days my friend, I thought they'd never end. But this jump to 24, then 26 then 29 then 32, almost like my 4-flat apartment building, all brick, mansord roof, that I paid $62,750 I bought this in January, 1972, the price increased every month there were 30 buildings in a development with pool, tennis courts etc. and they were at $87,500 in August and prices kept going up and up, for years, 3-4 years all fueled "HIGH OCTANE" Mortgage REIT money. This was like premium gas in the hot real estate market, you got the money fast from rubes that were so dumb they didn't even understand decimal equivalents back then and you got the prices to jump even faster, it was almost like free money, who cared if you were paying 8, 9% or 11% or 13%, the price of that aparment 4-flat went to $110,500 in 12 mos. (if anything went wrong you just didn't pay the REIT back)Four years later they were selling for $362,500 and things started to level out when the supply of the "HIGH OCTANE" mortgage REIT money dried up from the M-REIT BUST. I will never forget this, this was just like the gold rush of the 1800's in California. It was around 1973, 1974 rising interest rates caused many REIT's to have severe problems in 1974 and 1975. People couldn't pay the higher interest rates and defaults skyrocketed and the economy weakened and loan volumes dropped. Mortgage REIT's were squeezed at every tentacle of exposure. As a result of this extremely rough period in the 1970's, investors shunned M-REIT's until 2007 regardless of the attempts to promote them.