Well, the small number of properties available in my little town continue their ceaseless ascent in value, and I’ve got another one picked out just for you: 435 Coleman, in lovely Old Palo Alto. Here’s the street view, courtesy of Google Maps…..
The ETF symbol DRV, shown below, is a triple-bearish instrument which has a well-formed head and shoulders pattern. The fact that it retraced to the neckline perfect and is now again retreating just strengthens the view that real estate – - which looked pretty much doomed in the financial crisis – continues to thrive. For now………
There are bubbles everywhere, and just about the only one indirectly benefiting me is the one in Palo Alto residential real estate. I bought my house in 1991 for about 15% of its current value, and the market could utterly crash around here and I wouldn’t feel a thing. The people paying five, six, or seven million dollars for a house (not a mansion………a house) could be deeply regretting their decision down the road. (more…)
Well, my goofy-ass idea to short SRS (the ultra-bearish real estate ETF) based on its head and shoulders pattern is actually panning out, which means that real estate………of all things………..just keeps getting stronger. (Fun fact: I see signs around town for a real estate development company called, of all things, SRS).
It seems hard to believe, but real estate is still surging. If you want to take advantage of this in a somewhat curious way, you could short the ultrabearish-on-real-estate ETF symbol SRS, shown below. It is sporting an extremely clean head and shoulders pattern, which spells doom for SRS and good times ahead for real estate.
Who would have thought a few years ago that real estate would once again be such a king, but it seems to be the case. One look at the ultrabearish-on-real-estate symbol SRS will put a chill through your spine, since it has fallen on a split-adjusted basis from $4,100 to, um, nineteen bucks. One particularly good-looking chart in this sector is shown below: