iREIT Daily

The Nasdaq Isn’t Down That Much – but It’s Still a Cautionary Tale

Brad Thomas

467 postsDecember 15, 2021

The markets ended down yesterday, recording the following final prices:

S&P 500 – 4,634.09 (-34.88, -0.75%)
Dow – 35,544.18 (-106.77, -0.30%)
Nasdaq – 15,237.64 (-175.64, 1.14%).

Considering how that latter index has been losing more than even the small business-oriented Russell 2000 lately, I want to provide a chart of its 2021 performance:

(Source: Yahoo)

It’s clear the Nasdaq is off its peak, falling over 5% from its record high in mid-November.

Please note the words “record high” there. Because the Nasdaq has overall been on fire since its mid-March bottom during the initial panic. But that enthusiasm has been tempered as of late.

There’s no denying that fact.

I bring this up for the same reason I’m going to bring up Bitcoin’s woes in a second. It’s to caution you to never put all your eggs in one basket – even a broad-based basket such as the Nasdaq.

While 5% really isn’t that great of a pullback in the grand scheme of things, it can still be an unsettling experience that causes investors to bail out… often at a loss thanks to their starting points.

That’s why, before you buy into any investment, you always want to:

Know your financial and emotional capabilities.
Limit your position size appropriately.
Set a percentage point – both to the downside and upside – where you’ll sell the smart way, not the panicked way.

Since, again, those rules should apply to any investment you buy, the same goes for any cryptocurrency positions you’ve opened or are considering opening. In fact, considering its intense volatility, you should double down on understanding your financial and emotional capabilities before getting involved.

Bitcoin has fallen about 30% from its November peak, making the Nasdaq’s dip look like the small potatoes it is. And the Bank of England is warning it could become “worthless” from here.

Now, central banks have a vested interest in seeing cryptocurrency fail. So I wouldn’t hedge any bets based on that opinion… any more than I’d bank everything on seeing bitcoin hit $100,000. Both are possibilities, but so is everything else out there.

Like I said, just be careful out there. There’s a whole lot of money to be made – if you keep both your greed and fear levels properly in check.

The World According to REITs

Outside of that, I’m afraid I’ve got inflation news to report. No matter what news channel you turn to today, you’re bound to learn that U.S. producer prices rose 9.6% last month.

That’s a record gain in the 11 years the Labor Department has been tracking wholesale inflation. Meanwhile, U.K. inflation hit its own 10-year high at 5.1%.

In other news, Congress has officially sent Biden a $2.5 trillion debt-limit hike bill, which will no doubt be signed into actuality very quickly.

And, before getting to our real estate investment trust (REIT) updates, I want to quote Recruiter.com Chairman and CEO Evan Sohn. Yahoo Finance interviewed him the other day about the job market and lack of willing workers.

Here’s part of what he had to say:

I think the other thing that we’re starting to see, really, is what we call the great re-evaluation. Companies are re-evaluating how they’re bringing employees back. Employees are re-evaluating what their priorities are. It’s not just about compensation anymore. It’s about new experiences. It’s about work-life balance. About progression…

If that’s the case – and I think he might be right, at least in part, about that prioritization aspect – all of those hiring signs we’ve been seeing for months aren’t going to go away any time soon.

So that’s your news of the day with a little personal analysis thrown in the mix. Now here’s your three REIT-specific stories:

Innovative Industrial Properties (IIPR) completed its purchase of a 27-property portfolio spread across Colorado, Pennsylvania, and North Dakota. The assets, which are 100% leased by regulated cannabis businesses, cost about $27.7 million.
Independence Realty Trust’s(IRT) Independence Realty Operating Partnership began an amended and restated unsecured credit facility. The borrowing capacity under its existing revolving credit facility will jump from $350 million to $500 million with a maturity date of January 2026 instead of May 2023.
Equity Commonwealth (EQC) is now board-authorized to repurchase an extra $150 million outstanding shares through December 31, 2022. As such, it now has $170.5 million available for future share repurchases. Year-to-date, it’s bought more than 5 million shares at a weighted average price of $25.87 per. That makes for a total investment of $129.5 million.

Incidentally, I had to do a double-take after seeing the chart below. Both the first few “up” and “down” numbers looked exactly the same as yesterday’s.

After doing my due diligence into the matter though, it turns out there are slight differences there. And the names involved have definitely changed day to day.

Still, I thought I’d assure you that you’re not seeing double and that no error was made in the making of this chart…

(Source: The Daily REITBeat)

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.

Yesterday’s Taper News, No Tantrum Included

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

The Nasdaq Isn’t Down That Much – but It’s Still a Cautionary Tale

Brad Thomas

467 postsDecember 15, 2021

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The Nasdaq Isn’t Down That Much – but It’s Still a Cautionary Tale

467 postsDecember 15, 2021

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