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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Podsiadlik who wrote (4615)	12/9/2008 3:39:26 AM
From: RockyBalboa	Respond to of 6370

SRS vastly underperformed comparing to the underlying index as seen from IYR, particularly in the last 3. I looked at IYR holdings and there is a lot of stuff which can easily blow up because of excessive leverage, high debt and EBITDA earnings which cover interest charges and not much more. Particularly VNO has lots of debt and an EBITDA not sufficient to sustain operations in the long run. In that, SRS (or shorting IYR) could be interesting for the coming Commercial RE meltdown. Perhaps Bill believes that such a meltdown could come in 2009 when malls are emptied because of bks in retail and office space is vacated. finance.yahoo.com And yes, sometimes I had bad feelings about the short ETFs, recently in SKF during the shorting ban... I thought they became vehicles to suck in investors and build positions, then tools to prop up the market as they are forced to aggressively cover positions. Alas, it was not over for SKF after that. But now?