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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (46546)	12/4/2005 9:58:35 AM
From: redfrecknj	Respond to of 110194

IYR is up 100% over the last three years, so a -1.0 log beta REIT investment, which doesn't exist, would gain 100% if the IYR ultimately reverse its gain by declining 50%. bigcharts.marketwatch.com SRPIX is a -1.0 percentage (daily) beta fund and thus falls short of a -1.0 log log beta, but it should gain significantly more than 50% if IYR declines 50% -- check results of other inverse percentage beta funds -- which beats outright shorting and doesn't require a margin account.

To: westpacific who wrote (46546)	12/4/2005 10:00:44 AM
From: Ramsey Su	Read Replies (1) \| Respond to of 110194

west, I am not sure if SRPIX was the one I looked at before but if it is the one that I am thinking about, that is a fund that shorts a bunch of traditional real estate reits. I believe residential real estate is going to be hit hard this time, not income property. In fact, apartment rents may go up if joe6paks cannot afford their MacMansions anymore. REITs pay dividends. That is always the negative in shorting income producing REITs. (not to be confused with the NEW and NFI type REITs) For me to look at each of the REITs within the fund that I looked at was far too much effort. Why not just look at individual stocks or sectors that could be hit much harder than a fund? Ramsey