I suppose the theory is that rising interest rates are going to choke off real estate development, or perhaps the theory is that real estate development is reaching the saturation point of all the market can absorb and that another down turn is coming.We HAVE had five years of real estate repair. I'd think another two or three years at least (and possibly much longer) of continued recovery is in the pipeline, but who knows?
It's a curious theory to be shorting anything smack in the middle of a bull market.
NAREIT had a couple of paid "articles" (actually paid infomercials) in today's WSJ property section. The jist of one of them is rising interest rates don't hurt reits in the long run....with some examples.
Actually, I think it was an effort to stop outflows from reit etfs and mutual funds.
For those not trying to time market cycles, short term movements in price are irrelevant as long as the dividends increase at least with inflation.