.....and now for something COMPLETELY different ..........,.but first, take a F N pill, you know who I'm talking about, Mr. the sky is falling himself. God it's hard to take As usual the market well ahead of itself at record highs and rate expectations. It just got another slap upside the head, which will last for awhile then back to usual. If you think about it THIS is exactly why the Fed has been patient, methodical and data dependant. Can you imagine having said they would cut in March only to see reality hit them square in the face? Bare in mind this is but one data point. If we get more of the same with upcoming PCE, well then we got something to talk about. This seems exaggerated because everything got ahead of itself in particular sentiment. Those rate sensitive like reits as usual get hurt the worst . Hey, I myself bit early and added a thousand shares of SRU, s#@ t happens.
As noted a short while ago I sold two very very large positions and trimmed a few others, all tolled, went to nearly 50 percent cash, which is somewhat crazy but in hind sight worked well. I did it to protect large profits and because I sensed we were ahead of ourselves here and the setup had a good chance at being to the downside.
With regards to where we are here, there are a few people that actually get it here including but not limited to Este, Frankie and Bunny (when she's not on hallucinogenics). No one likes the feeling of these kind of days but that is the world of stocks, and no it is not a conspiracy perpetrated against the Reit sector as one suggests. Hard to imagine we are in a good place here but we are.
And now for the " something COMPLETELY different".........lots of chatter about NCIB, SIB etc. will it won't it how much etc. What if ( and I MUST preface this as not MY base case) What if Manji did what he's been dieing to do..........the unthinkable (I can't even say it) What if he plowed most of cash raised into purchasing more reits??
You still there??
No, he wouldn't have the balls to do that, BUT, I firmly believe NOW, the timing to do that would be light-years better AND much more lucrative to the Reit. Not to mention that I think he is just itching to do it. For the record I would still have come out against it. This is all to say that the timing is right here for this sector. I know I and others have been saying this for a couple months now but rare to time things to a tee and the markets move in cycles that don't always start nor finish exactly as we expect. One thing I know for sure, we ARE on the other side and coming out, reit sector still has headwinds and Rumled4skin is an idiot, therefore start or keep nibbling. While some may be out of bullets, I just did a MAJOR reload and am watching closely. Next up PCE may be the tell.
Stay good, sorry for the long ramble.
DZ