The Best Real Estate Stocks to Buy and Sell Right Now
Shah Gilani|March 30, 2023
Markets are rallying today, with the Nasdaq-100 even spiking up into bull market territory. But I wouldn’t get too excited. Bottom line, the quagmire with the banking system is far from over. A ton of banks are sitting on marked-to-market securities losses amounting over $620 billion, according to an analysis from Goldman Sachs.
But that’s just the tip of the iceberg. In last week’s Total Wealth column, I wrote about the staggering amount of money that regional banks have tied up in loans, many of which are in the commercial real estate sector. Go back and check out that piece if you haven’t already – while banks have gotten away for a while with not having to record the devaluation of those loans, that’s about to change, and when it does, we could see a whole new round of depositor flight.
The Fed wants you to believe it has this problem handled with a combination of discount window lending, the new Bank Term Funding Program, and advances available through Federal Home Loan Banks. But there’s a downside to all that – as usual, when you look at the fine print, banks that are over-reliant on these methods are basically just kicking the can down the road rather than solving the problem.
I’ll be diving deeper into these issues in tomorrow’s Total Wealth article – keep an eye out for that.
In the meantime, the spotlight on commercial real estate and its role in regional banks’ insolvency has created some turmoil in the sector, which makes it one of the best places right now to go hunting for opportunities. You have to be very careful here – a lot of the household names you’re familiar with are toxic traps right now and will drop your portfolio like deadweight.
But don’t worry – I’ve got the scoop on which of those losers to avoid and which will give you the best bang for your buck, especially if the rally continues.
You can get all the tickers here just by watching the video below.
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As I said, keep an eye out for tomorrow’s article, and we’ll see you next week.