Is now the time to invest in Retail Real Estate?Surely you can’t be serious WW? We’re about to enter a recession! Everyone is struggling for cash, the economy is faltering.
Commercial real estate prices have corrected over 25% since the start of 2022. The source:
fred.stlouisfed.org
In some instances in the US, corrections of up to 40% have been recorded.
Now I’m not saying the correction is over, but I am saying nothing goes in a straight line. These markets provide opportunities, all you need do is look.
On the above monthly chart of Acadia Realty Trust (who specialise in retail investment properties) a correction of over 70% has printed. A number of reasons now support a long trade position (not investment), they include:
1) Price action and RSI resistance breakouts. The RSI breakout is particularly noteworthy, 10 years of downtrend. This is a remarkable trend shift.
2) Price action finds support on past resistance. Look left (blue and orange arrows).
3) No share splits.
4) There is a price action target here, but will leave that for another post elsewhere.
Is it possible price action continues to correct? Sure.
Is it probable? No.
Ww
Type: Trade
Risk: <= 6%
Timeframe for long: As per your strategy.
Return: Mystery
