“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,” Don Dion Reports From The Street.
“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%,” Dion Reports.
“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,” Dion Reports.
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