The Sand P will get down to 1209. It will be a good time to buy because it will be 1350 by year end. The stock markets will recover. I would recommend not having to much REIT stock in one company; spread the money out among diversified companies. It may not happen but President Obama wants to let American homeowners refinance their loans. I do not think this will effect all REITS, commercial loans may not be effected. Also the SEC is talking about changing rules that govern how REITs operate, first their NAV--net assett value they would like to have daily reports like closed end funds do and there is talk of REITs following the leverage rules other companies have been following which could negatively impact the ability to leverage and achieve the high dividends we have been getting. I do feel AGNC is a good company but refinancing could impact them with prepayment risk. RSO has lower ratings than AGNC but they are into more commercial real estate. I listened to their quarterly report and they seem like a good company. I do not think they would be effected by refinancing but will benefit from the low interest rates. The 2 companies may balance each other out for risk. RSO moves with the stock market more so than AGNC and the market will go up soon.
In the next week or so the REITs AGNC,RSO,IVR, CIM, CMO,and ARR will become pregnant with the next quarter's dividends. RSO plans to pay $1 for 2011 so the next dividend is almost certainly a $.25. They said this in their recent quarterly presentation. ARR will be announcing the next 3 months of dividends because they pay monthly; septembers is already declared.
At 1:05 pm SLV is up 3.9% at $42.10.Kitco silver is $43.23 up more than gold which is $1876.20 now. I saved a lot of headache by parking some cash in silver that was in stock; the silver has done well for me at a 5.64% rise so far in just a week or 2. There is a possibility gold could come down some more when people start entering the stock market again, I do think silver will outperform gold because silver is an industrial metal. Copper will also go up even more certainly than silver.