SECTOR-REAL ESTATEThe Real Estate sector is one that is sitting down on its long term support line, making it a sector that I will be adding long positions from here. I will be adding to it as long as it is below the 24.65 horizontal line. The dividend yield on this particular ETF is at 3.99% at the moment. FREL
FREL trade ideas
Top of Real Estate?In short I theorize that the real estate sector is overbought, I think those people who got in at the covid lows created a huge trend that is now parabolic, at an extreme, euphoric, whatever you want to call it. The trend hasn't changed, yet, on any of my timeframes, but I think this is mature and it has my attention for the short side.
Maybe the first couple months of the new year bring a wave of selling from people who were waiting on the capital gains for the new year so they won't pay taxes until next year?
I am currently advising a friend who owns about a half a million in real estate on strategies to lock in the equity gains on his properties by using the financial markets with a net short position as a hedge. He's very interested in taking his real estate game to the next level in regards to markets and I know hedging is going to help him increase his efficiency and growth rate, very exciting stuff.
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