Gregor,
I think REITs are likely to have a sunny few weeks as long as the techs don't get red hot. They broke through 300 easily and 305 and 312 are the only minor resistance points on the way towards 329. REITs are better values than bank stocks, and will respond much better if the market stalls out, as large banks (the leaders) appear to make a decent portion of earnings from underwriting, venture capital, and investments. WEI is just about the only high quality REIT that hasn't moved significantly up towards it's old range. PLD, O, PSA, UHT, KTR are still low also. For very low risk... GLB prA, PSA "A" and FCH prA are a few investments that I consider safe with such high yields, that there would be little downside, even with another point of interest rate hikes. TCR and RFS are very low, but wait for the selling to subside. CWN is very cheap.
I really have very little feel for the bank stocks, but I'd watch the technicals on GE, which makes a large portion of it's profits from the financial side of the business, and has been acting like a bank stock. Of course, it was recently upgraded and will likely trend up slowly towards 200. With WFC buying another bank today, there is always the upside potential of mergers and buyouts supporting the banks, especially now that brokerages are fair game also.
Richard
p.s. If you want to gamble on PRT, it may pay to buy 1/2 of PRT and 1/2 of PRT convertible preferred, since the dividend is more likely to be paid for the preferred if they can get through the funding problems. |
