April 15, 2004

Off a Cliff: Chart of the Day

Below is an image of what happens to interest rate sensitive stocks. It's a three-year chart for RWR, an exchange traded fund that tracks the performance of the Wilshire REIT index. Unfortunately, you can't buy put options on RWR, or on IYR, an ETF that tracks the Dow Jones Real Estate Index. Could this happen to other sectors as well? Homebuilders? Mortgage lenders? Financials? Yes. Traders with a keen eye should have a field day if rates keep rising like this. Rate Rise Sinks REITS


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