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Bond Outflows going into REIT stocks for Dividend payouts.

February 15, 2011 – Comments (0) | RELATED TICKERS: SPY , IYR , DOG

Partial from the EDGE 

About Stocks: IYR, VNO, SPG, ELS, NCT, AGG, BAB, BABI, BABZ, BBK, BBN, BHK

Retail investors are just now starting to move cash out of bonds and into equities, it's clear that caution and skepticism still dominates.

  After all, the S&P 500 up more than 88% from its bear market low and has erased the losses associated with the collapse of Lehman Brothers in late 2008. So it makes sense that REITs are perking up now since they are some of the most bond-like equities. The IYR offers a 3.7% dividend yield in addition to the potential for price appreciation. Compare that to the 3.4% yield on 10-year Treasury notes.   To take advantage, today we add three real estate stocks to the portfolio. The rationale is simple: Instead of adding a REIT ETF like the (IYR), which is weighed down by the large number of slow moving stocks in the sector, I want to concentrate on the handful of issues with the most potential.  And boy, are there some attractive REITs out there right now.

Municipal bonds kept bleeding assets with outflows of $12.5 billion during the month after record outflows of $13.4 billion in December. 

Themes: BOND Market Bubble Bursting.  

About Stocks: IYR, VNO, SPG, ELS, NCT, AGG, BAB, BABI, BABZ, BBK, BBN, BHK