SRS

I finally did my work on SRS. Something I should have done before I bought it but because it was an index I didn't. (not a good excuse, duh) I took almost two hours to find out what exact securities where in this stupid thing. Rather annoying. Anyway after really studying it, I still like it. I was ready to sell it and move on to another idea I have but after studying I decided no I actually really like this thing. It fits my theme short criteria and will probably let it run for awhile and maybe even make it a normal size position at some point (probably stay small for awhile). There are 82 securities in here but the top 16 compose 51% of the weight within the index.

REITS have been on a tear for a very long time. I think the correction to more normal levels has started and with financing drying up alot of the deals that allowed the REITs to dump there properties at continually higher prices is now gone. With the top 16 REITs in SRS having an average of a 3.4% yield that does not translate very well into much higher stock prices in my opinion. As a result I see a very small likelihood of the index going up 20+% in the next few months. Once again not a recommendation but after SRS has fallen I am now very comfortable just not worrying about it for awhile and let it go up or down over the short term.

Below are two articles that are a little outdated but I thought instructive if you want to learn more.

http://usmarket.seekingalpha.com/article/40111
http://usmarket.seekingalpha.com/article/41743