iREIT Daily

My Wishlist for Wall Street

Brad Thomas

467 postsMay 10, 2022

Since today’s my birthday, I’ve spent the last several weeks fielding questions from friends and family members about what I’d like. Truthfully, the best gifts I could receive come from just being around my loved ones, laughing, and making great memories.

However, these questions did get me thinking about a few things I would like to see in the trading realm. So, I sat down and made a wishlist of three things that would improve investing for all of us — especially in today’s economy. Here is my wishlist for Wall Street.

Lose the Fear

This a factor I see influencing our economy now more than ever. One of the most famous quotes in the Star Wars franchise comes from Yoda saying, “Fear is the path to the dark side. Fear leads to anger. Anger leads to hate. Hate leads to suffering.”

Well, honestly the same can be said for Wall Street — except in this context, fear is the path to financial suffering. Fear leads to fluctuations. Fluctuations lead to volatility. Volatility leads to the dark side.

Especially in today’s market, I would love to see a little more level-headedness and long investing from Wall Street. I truly believe basing portfolios on strong balance sheets and solid fundamentals will lead to less fear and a ferocious rally.

Treat the Market Like a Business – Not a Casino

If fear is the path to the dark side, greed is the best vehicle to get you there. The other day, I reported on Warren Buffett’s rebukes of Wall Street.

“Wall Street makes money catching the crumbs that fall off the table of capitalism,” he said. “They make a lot more money when people are gambling than when they’re investing.”

With apps like Robinhood or Webull, it seems the market is more appealing than ever to those looking to make a quick buck. However, if you don’t understand the fundamentals of investing, it can spell big trouble. Wall Street is littered with sharks, short sale hucksters, and many other scam artists just looking for uneducated investors to get one over on. And as we saw in 2008, these conditions can spell disaster if they’re left unchecked.

It’s important to recognize how to invest responsibly so you can protect your assets and promote a healthy economy for the rest of the world.

Eliminate the Herd Mentality

Confirmation bias, anchoring bias, and buyer’s remorse are some of the biggest psychological hurdles when it comes to investing, but the most destructive of all is having a herd mentality. With a herd mentality, investors don’t think for themselves. They don’t research but instead base their investment selections on the successes and failures of others.

This is not only detrimental for the individual, it’s also contagious — and it can contaminate the entire economy when enough people move in the same direction. What’s worse, many times, these moves are based on fear and not founded on solid research. Our current climate is a great example of herd mentality dictating the direction of our economy.

If I could only ask these three things of Wall Street, I think we’d experience the type of economy that could take us from aimless to unstoppable.

Other Non-REIT News to Know About

The Corruption Behind COVID Relief

While officials still can’t determine precisely how many billions of dollars in Paycheck Protection Program loans impostors have made off with since 2020, they know it’s a lot.

A total of $800 billion was reserved for relief by the Small Business Administration during the early days of the COVID-19 pandemic. Now, many experts believe a good chunk of that tax-payer money was obtained unfairly.

“I can’t rule out that the fraud could be not only in the tens of billions, but maybe, as some have estimated, upwards of $100 billion,” Department of Justice Inspector General and Pandemic Response Accountability Committee (PRAC) Chair Michael Horowitz said. “But it’s too early for me to tell you how high that number is going to go. I know it’s in the billions.”

Of course, the whereabouts of this money is and will probably remain unknown. As details from these findings emerge, it becomes more and more clear that the government has a lot of explaining to do to American taxpayers.

The World According to REITs

Let’s take it from Wall Street to the West Coast in today’s REIT news. See below for some interesting growth in the Golden State.

Terreno Realty Takes Santa Clara

Terreno Realty Corporation (TRNO), an acquirer, owner, and operator of industrial real estate in six major coastal U.S. markets, just bought a new property in Santa Clara for about $54.6 million.

The property comprises one industrial distribution building containing nearly 135,000 square feet on 6.5 acres. The property also provides 13 dock-high and five grade-level loading positions and parking for 91 vehicles. The property is 100% leased to four tenants (the leasesexpire between 2022 and 2027), and the estimated stabilized cap rate is 2.5%.

Terreno shares remain down in spite of this news, shedding about five points in five days. Of course, in this economy, that’s not saying much.

Hudson Pacific Branches Out

Hudson Pacific Properties (HPP), one of the West Coast’s most prominent REITs, just signed a 60,000-square-foot lease expansion with postproduction firm Company 3 at one of its premier Hollywood properties. In this expansion, Company 3 will lease the totality of Hudson Pacific’s 130,000-square-foot Harlow office building at Sunset Las Palmas Studios.

Victor Coleman, chairman and chief executive of Hudson Pacific, said in a statement:

Demand for on-lot Class A office continues to grow as content production companies work to meet growing secular demand, evidenced by Company 3’s expansion into the entire Harlow office building. This lease underscores the success of our strategy of building high-quality office properties on or adjacent to our Sunset Studios’ lots and the potential for synergistic office and studio uses in Hollywood and beyond.

With one of the biggest economies in the world, California has tons of potential for putting up big numbers in the REIT space. It’s always a good idea to keep an eye on this hub of innovation.

Happy Investing

Brad Thomas

467 posts

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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.

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

My Wishlist for Wall Street

Brad Thomas

467 postsMay 10, 2022

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