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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (110635)	1/20/2008 9:54:43 AM
From: KPHinds	Respond to of 132070

I'm sure you're being facetious. For REITs I'd go with a company that is properly match funded, hedging interest rate risk, with subordinated debt and some foreign exposure. What would make the most sense is to go with a security REIT with 100% subordinated debt that has gotten killed because it is a REIT but actually has limited their risk because their debt is subordinated- they make money on the interest rate spread when they subordinate their debt. (I don't know that company but this is part of the game that some of the REITs play.) I know the play that I'm making right now with .2% of the money I will eventually put into securities, but I just don't know enough of the details on REITs to feel comfortable making a bigger bet. I don't understand the degree of leverage we have on the more standard REITs, but I'd guess at some point they will get crushed even more than they have so far. Going through SEC filings I don't like a lot of what I have seen. I'm going to go and read my Soros to see what he said about REITs. I'm pretty negative on the US market right now, but I am trying to find legit value in some of the crushed sectors, and I'm selling the dead cat bounces. Right now I have an account with about 20% of the money that I'll eventually invest, which I've been trading a bit, and that account is down 1-2% so far this year as of Friday. As of Thursday and Friday morning I was up about 1% and I cashed out to an extent. If the Dow goes down below 11000 I'll increase the amount of money I'm going to put into the market. I wouldn't be as invested as I am right now (at 15%), except for the fact that I bought into a convertible(sp?) that seems to have been mispriced by the market.