Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

RE:RE:RE:Had to laugh at yet another TJ special

[Frankie10]

DZtrader wrote:
As noted a number of times, I like to buy at or near the bottom. I think this sector is in that range now. I believe we are getting reasonably good prices here. I have noted the debt wall in my opinion is the largest overhang for this sector right now. I think most everything else has been priced into this sector. Rate cuts will be helpful despite what TJ says. I don't believe the sector sees another 30 percent downside after the Fed begins cuts. The overall market might well see some reasonable downside when everyone else figures out that the economy in the U.S. is softening. As I pointed out months ago with regards to asking for rate cuts, be careful what you ask for, once they happen you will soon start to hear the recession calls coming and that will pull the markets down. Typically reits can hold their own durning this time and will start to run as we are pulling out of it. I am happy enough "initiating" positions down here. I am farily overweight in cash right now and don't mind trading for this yeild.

  I may have a different position than some others. My investment in this sector is simply replacing cash in a declining MM fund. I have no problems (per say) if the sector sees further pressure. The yeilds are upwards of double of current MM. If I hold for a year or more and collect 6-9 plus percent awaiting capital appreciation, that works for me. Specifically pertaining to Artis, it was a small speculative position that ended up nearly doubling in the last little while. I think the upside gain is greater than the downside risk at this point and that goes for the sector as well. Worth noting reits are in no way my largest holdings of my portfolio but they are larger than they have been in the last while and stand a chance to increase from here.

Great post DZ. Thanks for sharing your thoughts. I know we haven't always seen things exactly the same way (cough that cash position cough)... but I couldn't agree more with this post. CDN rate cuts are a fundamental postive - cost of debt decreases. US rate cuts will also be a fundamental positive - risk free rate falls, as will implied cap rates.

All the best DZ. I think avoiding this board and keeping a long-term focus is the healthiest thing at this point. Cheers to all.