Agreed, his statement suggests even more property inventory. Apparently, he has never shopped for industrial zoned real estate and does not see a plethora of unemployed folks building jack $hit in the future.
Back in 1990 industry saw a big demand for U.S. manufactured goods but that did not pan out, maybe this time we mimic World War 2 production cycles seems how it appears were setting our selves up for that kind of an event.
Humm, if future brings high inflation due to huge government spending, real property ground acts as an inflation hedge. If U.S. Dollar plunges, Demand for commodities increases as does prices, and our exported goods become attractively valued to the world once again; thus, we'll become another going concern.
Plus this bitch's dividend will buy you even more equities for free at deep discount providing you reinvest it in something else thats out of favor or sold off then.
A lot of good can happen in six months, like maybe a new Goverment...
Well, it would be nice if the stock went back up....but I do think that there is a lot of risk.
While PLD is the biggest and I assume well diversified in terms of its customer base......the amount of debt coming due next year is a lot (IMO), if things get really bad next year potentially they can't raise money? Plus the dividend gets cut if money is tight.....which leaves you with a $3-4 stock until some real economic growth comes along.
If you throw in potentially 3 Million Auto related jobs as a worst case scenario then you could see some really bad results.....
As much as I hate to say it...seeing the auto industry's Congressional hearings doesn't give me confidence in the automakers, the unions, nor the Congress......can hardly blame folks for cutting their losses and selling.....
It is looking more and more like our wonderful government (both democrats and republicans) has taken a bad financial situation that would have included a mild recession and bungled it into a major recession. In the history books letting Lehman collapse will be a "wrong" decision. Ironically enough, if they had to pick one they might have been better to let AIG collapse as the insurance businesses are state regulated and solvent....which would have left the "toxic CDO's"...which might have forced financial institutions to raise their hand and allowed the government to direct the financial bailout directly to those firms erasing the "toxic" debt (which if I recall correctly was the intent of the bailout package?).
However its always easier to second guess.....hopefully it will turn out well....mild recession and PLD gets through next year paying dividend and getting their balance sheet and financing looking better...which would then lead to a stock approaching double digits again by the end of the year.