Monday, September 24, 2007
Fly Buy: BWLD
Disclaimer: If you buy BWLD because of this post, your local butcher will run out of 2 1/2 inch rib eyes. And, you may lose money.
Johnny Blags --
this is what I was saying last week. The homies are only a small component of SRS. One must also think of all those hard asset REITs that got a shot in the arm from helicopter Benjamin.
The tie between homebuilders and the index that SRS goes 2X short is the liquidity bubble.
As in the housing market, the amount of building, the prices paid for property, and the degree of leverage leaves most components of the real estate index vulnerable if the real world fails to meet optimistic assumptions about demand and lease rates.
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