Added more shares of Proshares UltraShort Real Estate (SRS) at $58.80. I have been able to lower my cost basis by purchasing majority of shares in the $50′s. The same position that cost me under $10,000 now would have cost over $40,000 just a month ago. I figure that the commercial real estate market still has plenty of room to decline. The commercial real estate market is suffering from deteriorating market conditions. The US commercial real estate market is experiencing rising vacancies, declining rents and debt financing problems. Commercial real estate is not expected to bottom until the end of 2009.
Make Money Investing The Warren Buffett Way
Mark,
Like you I’ve been buying SRS shares, in small chunks as a hedge. However, I’ve been suprised that SRS has fallen so far in the past week, after being over 100 a week ago. The moves don’t seem consistent with the market action. Perhaps, it has something to do with the year end capital gains distribution that will occur in the next week.
@Super Saver
I agree. The price drop has been dramatic. SRS lost 70% of its value in 14 days. I think a lot of investors have sold off this ETF ahead of the pending distribution. I expect that investors will purchase shares again in January.