The Real Thing for REITs This Time?

Avi Morris submits:Stock markets are in rally mode and the higher yielders are getting a lot of attention as they did last year. The Alerian MLP Index is still close to the 300 ceiling which has held twice. Junk bond funds are at or near roughly 18 month highs (bringing more modest yields). REITs over the last 6 months have been stumbling while trying to make new highs. The Dow Jones REIT Index had been near 330 three years ago and then held well in the first 8 months of 2008.

Marc Chandler submits:The US dollar is broadly higher as the correction seen before the weekend was extended through the Asian session. In Europe, the greenback’s gains have been pared, but it remains above last Friday’s high against the major currencies. The exception is the yen, against which the dollar has been confined to roughly JPY81.00-JPY81.50.The dollar’s bounce looks to be more a function of market positioning and a bout of profit-taking more than a fundamental-driven development.

Avi Morris submits:The Dow Jones REIT Index more than doubled in 6 months last year when it rocketed ahead from 85 to 181. After reaching an interim high in September, it has been struggling while most popular averages have been roaring ahead. The REIT index fell 5-10% off its high for 3 months. In the middle of December, REITs were hot, taking the index to 192 after which it pulled back pretty much hugging its former high level of 181.

Ever since the recovery began in 2009, a weak housing market has held back the U.S. economy. The first rebound in home prices was lackluster and after only a year was followed by another dip. But the recent upturn in home prices looks like the real thing. One clear sign of a turning point: In March, homeownership hit a 17-year low, while the 12-month gain in home prices was the biggest in seven years. Those two extremes suggest that the market has hit bottom.

Ever since the recovery began in 2009, a weak housing market has held back the U.S. economy. The first rebound in home prices was lackluster and after only a year was followed by another dip. But the recent upturn in home prices looks like the real thing. One clear sign of a turning point: In March, homeownership hit a 17-year low, while the 12-month gain in home prices was the biggest in seven years. Those two extremes suggest that the market has hit bottom.

The quiet overnight session was started by comments from Buba's Weidmann, whose statement, among others, that the ECB will not cut interest rates just to weaken the EUR together with the assertion that the EUR is not seriously overvalued, sent the EURUSD briefly higher in pre-European open trading.

DETROIT (AP) — Spoiler alert: This story contains words and phrases that some people want to ban from the English language. "Spoiler alert" is among them. So are "kick the can down the road," ''trending" and "bucket list."

Trade Radar Operator submits: On Tuesday, Intel (INTC) reported strong earnings for the first quarter of fiscal 2010, with the company calling it the "best first quarter ever" (see conference call transcript