Genl Growth Properties (GGP) (15.33 -0.40) Jan 4 (Reuters) - A good economy this year can help real estate investment trusts. A great one might hurt. REITS were hot in 2010, helped by low interest rates that kept down the costs of borrowing for the capital intensive sector. The outlook for this year is not quite as strong because an improving economy is expected to lead to higher interest rates that will dampen earnings, even though it should boost rents and demand for office space and other real estate. "If you think of commercial real estate as a lagging cyclical sector, then there are probably other sectors people can get more excited about and have a better growth prospects in an improving economy," said John Wenker, senior managing director for FAF Advisors. The firm has $2.5 billion of assets under management in its real estate securities arm. Higher rates could make growth industries much more attractive, as happened during the late 1990s when investors shunned REITs (Thomson Reuters 12:36 PM ET 01/04/2011 More...)
have you looked at dollar store stocks lately? yup, down. why you ask? cause people chase performance. it performed well during the recession because it had better sales. people smelled the money and bought their stock. now there are stocks out there with better prospects for growth. people then sold the dollar store stocks in favor of tech and other potential growers. people like making money, more the better.
how is that weak? you can stand on your pedestal and preach about value, prudence, patience but true driver of market is performance.