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SPDR Dow Jones REIT ETF Message Board

  • bear_market_is_coming bear_market_is_coming Jul 17, 2007 9:29 PM Flag

    Morningstar - REITs OVER PRICED!
    Measuring the Market's Value
    Monday July 16, 7:00 am ET
    By Sonya Morris, CPA

    REIT stocks have stumbled recently. In fact, iShares Cohen & Steels Realty Majors ETF (AMEX:ICF - News) lost almost 12% during the second quarter. Nevertheless, REITs ran so strong for so long that they remain squarely in overvalued range, which suggests that there could be more downside to come.

    Finally, here's a table of price/fair value ratios for selected ETFs. A price/fair value ratio is simply the ETF's price divided by its collective fair value. A price/fair value ratio below 1.0 indicates that the ETF is undervalued, while a price/fair value ratio above 1.0 indicates that the ETF is overpriced.

    REITs 17% over fair value.

99.47+0.30(+0.30%)Sep 23 8:00 PMEDT