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nothing. russell index and reit index is already in a secular bear market. There's several markets that have very poor correlation to each other...the russell index, reit index, S&P, bonds, and international equities have different correlations to each other. If the russell goes any lower, lots of companies will go bankrupt and the composition of the index will change to reflect the ones that survive. When companies get absurdly below the price of their cash, buildings and bonds, and they still have good cash flow etc, either somebody buys them, rips them apart and sells the pieces for market value, somebody buys them and takes them private, or somebody larger buys them to increase earnings. Or eventually a mutual fund buys them and bids them up. All bets are off if we go to 15% interest rates, tho. |
