Panic now: the housing bull’s turning bearish...or is it?

‘Panic now: the housing bull’s turning bearish’ is the headline in last week’s Money Week magazine. I enjoy reading Money Week and have learned a lot from their articles over the years. You can find out more about the magazine here:

But what am I to do? Should I follow the advice of Jonathan Compton, who wrote the article, and try and short the housing market? Perhaps I should simply exit any investments that I have in the UK property market? This is a tough one, especially in the light of their advice back in December to buy Real Estate Investors PLC (Ticker: RLE), a real estate investment trust with exposure primarily to property in the Midlands.

Interestingly, the graph of the share price of RLE is almost identical to that of the iShares ETF IUKP. You can see it by clicking here. IUKP is an ETF that gives the investor exposure to the UK property market by being a ‘fund of funds’. The advantage of this is that it reduces the risk of being exposed to a single share tanking because of poor management. The number of IUKP ETFs being traded is approximately 100 times greater than that of RLE, so the liquidity is much greater too.

Mainly because of the above two reasons, I think it makes sense to trade IUKP rather than RLE. But should I own it at all? What will happen in the weeks and months ahead? Will it rise or will it fall? Well, have a look at this week’s video (below) to see what my opinions are about whether I should continue to own it, or indeed the other property fund, the TR Property Investment Trust (Ticker: TRY), that I follow. The other asset classes that I monitor weekly are also discussed in the 4min video.

If you want to understand more about how I trade the different asset classes, click here to get access to a 25min video (it's free)!

Have a great week!



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