NEW YORK (TheStreet) -- Don Dion posts his current insights on the stock, bond, commodity and currency markets in his RealMoney blog, anticipating which ETFs will be in play next. This week, among his blogs featured below, he wrote about real estate and housing ETFs, bundled products and the U.S. Natural Gas fund.
Real Estate and Housing ETFs Near the Top
Posted 8/10/2009, 1:35 p.m. EDT
Real estate and housing ETFs are in the most damaged sector of the American economy and running neck and neck with consumer sectors for the title of worst sector going forward, yet they nonetheless enjoyed a spectacular bounce. A broader short-selling rebound in some of the most beaten-down stocks (AIG (AIG) doubled last week) contributed to a frenzy in the sector.
iShares Cohen & Steers Realty Majors (ICF) climbed 42% in the past month, the best of the broad REIT ETFs. Vanguard REIT (VNQ) advanced 40%, while iShares Dow Jones U.S. Real Estate (IYR) gained 38% and SPDR DJ REIT (RWR) added 39%. iShares Dow Jones U.S. Home Construction (ITB) and SPDR S&P Homebuilders (XHB) enjoyed returns north of 40%.Improved credit conditions benefited REITs this spring and summer, but there are still clouds ahead with more than $150 billion in debt that needs to be rolled in the next four years. Any setback in the economy could trigger another wave of selling. Housing has shown signs of improvement recently and credit conditions are also favorable as long as rates stay low. These ETFs all show improved long-term momentum, with the housing ETFs showing more strength than the REIT ETFs. Still, none have momentum that exceeds that of the broader market. In the short run, real estate and housing ETFs are at or near the top. I've seen these outbursts of momentum come and go among the weaker sectors and rarely do funds stage a continuous rally from the bottom to the top -- even in bull markets. My firm recently added IYR in two of our momentum-based portfolios due to technical strength, but this position may be reversed quickly.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV