iREIT Daily

Major Market Figure Calls Current Conditions a “Vampire Phase”

Brad Thomas

467 postsJanuary 21, 2022

We had quite the day again yesterday. Although this time, it wasn’t your traditional up and down, up and down roller coaster.

The major indices rose nicely at first, with the Nasdaq gaining almost 2% and the Dow reclaiming over 461 points.

But those upward moves just weren’t meant to last. Mr. Market’s momentum started to wane as the day wore on until its enthusiasm left all together.

As it plummeted, U.S. stocks were left in the red across the board for a second day in a row, with the:

S&P 500 down 50.03, or 1.10%
Dow down 313.26, or 0.89%
Nasdaq down 186.23, or 1.30%.

Naturally, the Russell 2000 was off as well by 38.75, or 1.88%. Oil also slid 0.67, or 0.77%; and gold lost 4.10, or 0.22%.

That might look scary, and it might feel pretty bad too. But let me tell you that this will probably prove to be an ultimate amazing buying opportunity.

For those questioning my enthusiasm, yes, I do know about respected investor Jeremy Grantham’s warnings about where we’re at exactly. He released a paper yesterday on GMO.com titled “Let the Wild Rumpus Begin.” It’s a fairly detailed piece that includes this lovely warning:

…. We are in what I think of as the vampire phase of the bull market, where you throw everything you have at it. You stab it with Covid. You shoot it with the end of QE and the promise of higher rates. And you poison it with unexpected inflation – which has always killed P/E ratios before but, quite uniquely, not this time yet… and still the creature flies… Until, just as you’re beginning to think the thing is completely immortal, it finally and perhaps a little anticlimactically, keels over and dies. The sooner the better for everyone.

Yet even he isn’t saying to get out of stocks completely despite his assertion that U.S. markets are seeing “simultaneous bubbles across all major asset classes” for the first time ever. As he very well knows, there are always opportunities out there.

And my team and I aim to cover them.

More Non-REIT News

There’s much more to talk about today. Too much, actually. But I do definitely want to mention how Intel (INTC) plans to invest at least $20 billion into a new chip-making factory in Ohio amidst continuing global shortages.

That takes its last-twelve-month (LTM) chip-related pledges to over $100 billion. Which is awesome and all, but doesn’t help the current situation one bit.

As-is, Japan’s Toyota (TM) had to announce a 47,000-vehicle production cut for January alone. And we might be hearing more of the same from other car companies considering how they’re all suffering under the same conditions.

Misery, they say, loves company. In which case, the U.S. can console itself with how its businesses aren’t the only ones reporting some shaky earnings. Mainland European and U.K. corporations haven’t been showing entirely spectacular results either.

Between that and U.S. moves, global markets definitely dropped today.

Oh yeah, and bitcoin was officially below $40,000 at last check, while Peloton (PTON) tries to find its feet. And maybe its face too.

My daughter, Lauren Thomas, actually broke the news about the elite exercise company’s bearish plans. As she wrote at CNBC:

Peloton is temporarily halting production of its connected fitness products as consumer demand wanes and the company looks to control costs, according to internal documents obtained by CNBC.

CEO John Foley has since come out and said, “the rumors that we are halting all production of bike and treads are false.” But that’s probably just wordplay at work, especially since he went on to call the report “incomplete” and “out of context.”

You can read Lauren’s whole article here.

The World According to REITs

I really wanted to touch on comments from airline Emirates’ CEO about the 5G rollout. That and the fascinating case of train robbers in California – as if we’ve been transported back to the Wild Wild West, or something.

But I guess I’ll have to save those for Monday. Hopefully – possibly? – it will end up being a slow start to the news week.

Until then, here are your three real estate investment trust (REIT) updates to mull over:

Equinix (EQIX) opened its first co-innovation facility, located in the Washington, D.C. area. As part of its DC15 International Business Exchange data center, this latest installment will allow partners to work with Equinix on developing new methods of responsibly and profitably advancing its capabilities.
Indus Realty Trust (INDT) acquired an industrial building in Charlotte, North Carolina, for $23.6 million. The 217,000 square feet of rentable space is short-term leased through this June. And Indus believes it can easily re-lease the property from there.
Ventas (VTR) expects to report Q4 normalized funds from operations (FFO) at the high end of its already issued guidance. And that’s before additional one-time measurements are factored in. It also added that leading December indicators were strong, with move-ins at 106% of 2019 levels. In fact, it’s now had five consecutive months of positive year-over-year occupancy growth.

Meanwhile, surprisingly or not, there isn’t a single bit of red in yesterday’s top movers list. Admittedly, the green is just barely there in some cases.

But there it is nonetheless:

(Source: The Daily REITBeat)

Happy Investing

Brad Thomas

467 posts

View all my Posts

Brad Thomas is Senior Research Analyst at iREIT and CEO of Wide Moat Research LLC. With over 30 years of real estate experience, he is also long-time Editor of Forbes Real Estate Investor, a monthly subscription-based newsletter that dives deep into the vast world of profitable properties, and since 2021, he has served as an adjunct professor at New York University.

Thomas has also been featured on or in Forbes magazine, Kiplinger's, U.S. News and World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. And he was the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021 based on both page views and number of followers.

Thomas is the recently-published author of The Intelligent REIT Investor Guide (2021), co-author of The Intelligent REIT Investor (2016), and he wrote The Trump Factor: Unlocking The Secrets Behind The Trump Empire (2016) - all available on Amazon.

Thomas received a bachelor of science in business/economics from Presbyterian College and is married with five wonderful kids.

My Plan For Success In A Bear market

REIT Mutual Fund	Symbol
Alpine Realty Income and Growth Fund	AIGYX, AIAGX
American Century Real Estate Fund	REAIX, REACX, AREEX, AREWX, ARYCX, AREDX
Real Estate Securities Fund	MRESX
AR Capital Real Estate Income Fund	ARIAX, ARICX, ARIPX
AssetMark Real Estate Securities Fund	AFREX
Aston/Harrison Street Real Estate Fund	AARIX, ARFCX
Baron Real Estate Fund	BREIX, BREFX
BlackRock Real Estate Securities	BIREX, BAREX, BCREX
Brookfield U.S. Listed Real Estate Fund	BRUAX, BRUCX, BRUIX, BRUYX
CGM Realty Fund	CGMRX
West Loop Realty Fund	REIIX, REIAX, REICX
Cohen & Steers Institutional Realty Shares	CSRIX
Cohen & Steers Realty Income Fund	CSEIX, CSDIX, CSBIX, CSCIX
Cohen & Steers Realty Shares	CSRSX
Columbia Real Estate Equity Fund	CREAX, CREIX, CRRVX, CRERX, CREEX, CRRFX, CREWX, CRECX, CREBX
Compass EMP REC Enhanced Volatility Weighted Fund	CWRAX, CWRIX, CWRTX, CWRCX
Davis Real Estate Fund	RPFRX, DREYX, DRECX, DREBX
Delaware Real Estate Investment Trust Portfolio II	DPRTX, DPRBX
Delaware Real Estate Investment Trust Portfolio	DPREX, DPRSX, DPRRX, DPRCX
DFA Real Estate Securities Portfolio	DFREX
Dunham Real Estate Stock Fund	DAREX, DNREX, DCREX
DWS RREEF Real Estate Securities Fund	RRRRX, RRREX, RRRAX, RRRSX, RRRBX, RRRCX
DWS RREEF Real Estate Securities Income Fund	REFAX, REFCX, REFIX, REFSX
Eaton Vance Real Estate Fund	EAREX, EIREX
EII Realty Securities Fund	EIIRX
Fidelity Advisor Real Estate Fund	FHEIX, FHEAX, FHETX, FHECX, FHEBX
Fidelity Advisor Real Estate Income Fund	FRIRX, FRIQX, FRINX, FRIOX
Fidelity Real Estate Income Fund	FRIFX
Fidelity Real Estate Investment Portfolio	FRESX
Fidelity Spartan Real Estate Index Fund	FSRNX, FRXIX, FSRVX
Fidelity Series Real Estate Equity Fund	FREDX, FREFX
Fidelity Series Real Estate Income Fund	FSREX, FSRWX
Forward Real Estate Long/Short Fund	KSRYX, FRLSX, FFSRX, KSRAX, KSRCX, KSRBX
Forward Real Estate Fund	FPREX, FFREX, KREAX, KRECX
Forward Select Income Fund	KIFYX, FSIMX, FFSLX, KIFAX, KIFBX, KIFCX
Franklin Real Estate Securities Fund	FREEX, FRLAX, FRRSX, FSERX
GMO Real Estate Fund	GMORX
Goldman Sachs Real Estate Securities Fund	GREIX, GRETX, GREAX, GRESX, GRERX, GREBX, GRECX
Great-West Real Estate Fund	MXREX
Heitman REIT Fund	OARTX, OBRTX
ING Real Estate Fund	CRARX, IREWX, IDROX, CLARX, CRWRX, CRCRX, CRBCX
INVESCO Real Estate Fund	REINX, IARFX, IARIX, IARYX, IARAX, IARRX, IARCX, AARBX
Ivy Real Estate Securities Fund	IRSAX, IREIX, IRSYX, IRSRX, IREEX, IRSCX, IRSBX
John Hancock Real Estate Securities Fund	JIREX
Johnson Realty Fund	JRLTX
J.P.Morgan Realty Income Fund	URTLX, JRIRX, URTAX, URTBX, URTCX
J.P. Morgan Security Capital U.S. Core Real Estate Securities Fund	CEEAX, CEERX, CEEFX, CEESX, CEECX
J.P. Morgan U.S. Real Estate Fund	SUSIX
Lazard U.S. Realty Equity Portfolio	LREIX, LREOX
Lazard U.S. Realty Income Portfolio	LRIIX, LRIOX
Manning & Napier Real Estate Series	MNRIX, MNREX
Morgan Stanley Institutional U.S. Real Estate Portfolio	MSUSX, MUSDX, MSULX, MURSX
Natixis AEW Real Estate Fund	NRFAX, NRFYX, NRFBX, NRFCX, NRFNX
Neuberger Berman Real Estate Fund	NBRIX, NBRFX, NREAX, NRERX, NRECX, NRREX
Nuveen Real Estate Securities Fund	FREAX, FARCX, FRSSX, FREBX, FRLCX, FREGX
Oppenheimer Real Estate Fund	OREAX, OREIX, OREYX, ORENX, OREBX, ORECX
PHOCAS Real Estate Fund	PHREX
PIMCO RealEstateRealReturn Strategy Fund	PRRSX, PETPX, PETAX, PETDX, PETCX, PETBX
Pioneer Real Estate Shares	PWREX, PYREX, PCREX, PBREX
Principal Real Estate Securities Fund	PIREX, PIRPX, PREPX, PRETX, PREJX, PRRAX, PRERX, PRENX, PRAEX, PRCEX, PRLEX
ProFunds Real Estate UltraSector ProFund	REPIX
Prudential Select Real Estate Fund	SREAX
Prudential U.S. Real Estate Fund	PJEAX, PJEZX, PJECX, PJEBX
REMS Real Estate Income 50/50 Portfolio	RREIX
REMS Real Estate Value-Opportunity Fund	HLRRX, HLPPX
Rydex Real Estate Fund	RYREX, RYHRX, RYCRX
SA Real Estate Securities Fund	SAREX
SEI Institutional Mgd Real Estate Fund	SETAX, SEIRX
Spirit of America Real Estate Income & Growth Fund	SOAAX
SSgA Clarion Real Estate Fund	SSREX
Stratton Real Estate Fund	STMDX
T.Rowe Price Real Estate Fund	TRREX, PAREX
TIAA-CREF Real Estate Securities Fund	TIREX, TRRPX, TRRSX, TCREX
Vanguard REIT Index Fund	VGSNX, VGRSX, VGSLX, VGSIX
Virtus Real Estate Securities Fund	PHRAX, PHRIX, PHRCX, PHRBX

REIT ETF	Symbol
Flex Shares	ASET
Wisdom Tree Global Ex-US	DRW
S&P 500 Equal Weight	EWRE
iShares FTSE Industrial/Office	FNIO
MSCI Real Estate Index	FREL
S&P REIT Index	FRI
First Trust S&P REIT	FRI
iShares Real Estate 50	FTY
Flexshares Global	GQRE
iShares Cohen & Streers	ICF
iShares International Developed RE	IFGL
iShares US RE	IYR
Premium Yield Equity REIT	KBWY
ETRACS Monthly Pay 2x Leverage	MORL
Market Vector Mortgage	MORT
iShares Global REIT	REET
iShares FTSE Mortgage	REM
iShares Residential	REZ
IQ US Real Estate Small Cap	ROOF
iShares FTSE NAREIT Retail	RTL
DOW Jones Global RE	RWO
SPDR Dow Jones	RWR
Schwab US REIT	SCHH
Super Dividend REIT	SRET
ProShares Ultra RE	URE
Vanguard REIT	VNQ
Vanguard Global ex-US	VNQI
iShares International Developed	WPS
Wilshire US REIT	WREI
Pacer Benchmark Data & Infrastructure RE	SRVR
Pacer Benchmark Industrial RE	INDS
Pacer Benchmark Retail RE	RTL
Hoya Capital Housing	HOMZ
NetLease Corporate RE	NETL

REIT Name	Ticker	Annual Increases/yr
Federal Realty	FRT	51
Universal Health Realty	UHT	33
National Retail Properties	NNN	29
Realty Income	O	27
Tanger Outlets	SKT	26
Urstadt Biddle	UBA	25
Essex Property Trust	ESS	25
W.P.Carey	WPC	22
National Health Investors	NHI	17
Equity Lifestyle	ELS	15
Digital Realty	DLR	15

Major Market Figure Calls Current Conditions a “Vampire Phase”

Brad Thomas

467 postsJanuary 21, 2022

Featured Articles

The Great Housing Market Migration Is VERY Interesting

Let Dividends Help You Deal With Disappointment In The Stock Market

Amazon Wants to Ask What Ails You

Wall Street’s Workforce Crisis Should Be Taken Seriously

Santa Claus Has Left the Building

Major Market Figure Calls Current Conditions a “Vampire Phase”

467 postsJanuary 21, 2022

REIT Mutual Funds

REIT ETFs

Not All Dividends Are the Same