Showing posts with label leveraged ETFs. Show all posts
Showing posts with label leveraged ETFs. Show all posts
Monday, August 31, 2009
URE PRICE TARGET
On July 21st, indicators had URE in a Bear Trap. The price is up significantly and currently the bullish price objective of $10.75. I have owned since May of this year.
Real Estate Market
Current economic indicators show that the real estate market is in a nice uptrend, but may be a more long term bet than a short one.
Most recent U.S. construction numbers have been nice and sales of new homes rose to the largest increase in the last eight years.
As an investor, I would say that the real estate market looks good over a five year investment strategy, but with credit tight and an overall drop of 12% in the average housing price it still may be premature and a rocky road. This drop has placed many home owners underwater with respect to their mortgage and we could see a continued "leave the keys on the kitchen table". If there was one indicator I was watching closely, it is unemployment claims. This number has improved somewhat and has maintained. If this number continues to ease, we could see a very nice V-shaped recovery, if not we could see a quick downtrend in this market.
The consumer is the indicator in this market and should be watched closely. Many of the foreclosures will come to an abrupt halt if home prices stabilize.
The URE is up 150% over this time frame and I remain heavily vested. Keep in mind this is not for those who dont like large price moves. Right now it seems this could go either way, so if you have gains take some profits, if not, wait for a large pullback to get in.
Most recent U.S. construction numbers have been nice and sales of new homes rose to the largest increase in the last eight years.
As an investor, I would say that the real estate market looks good over a five year investment strategy, but with credit tight and an overall drop of 12% in the average housing price it still may be premature and a rocky road. This drop has placed many home owners underwater with respect to their mortgage and we could see a continued "leave the keys on the kitchen table". If there was one indicator I was watching closely, it is unemployment claims. This number has improved somewhat and has maintained. If this number continues to ease, we could see a very nice V-shaped recovery, if not we could see a quick downtrend in this market.
The consumer is the indicator in this market and should be watched closely. Many of the foreclosures will come to an abrupt halt if home prices stabilize.
The URE is up 150% over this time frame and I remain heavily vested. Keep in mind this is not for those who dont like large price moves. Right now it seems this could go either way, so if you have gains take some profits, if not, wait for a large pullback to get in.
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