By In the recent cover story titled “Real Estate Stocks Are on Sale. Where to Find the Best Deals” (June 30), a detailed overview of the currently unfavored commercial real estate sector was provided. The article explores numerous options, which can be quite overwhelming. However, one relatively easier approach is to consider the Vanguard Real Estate Index (ticker: VNQ), the largest real estate exchange-traded fund. It is worth noting that this fund’s top 10 stocks account for 50% of its portfolio. For those seeking an alternative, the equal-weighted Hoya Capital High Dividend Yield (RIET) could be a suitable choice. Both of these ETFs offer exposure to the entire sector while mitigating the risks associated with individual stock selection.
Reader’s Opinion
A reader named Harvey Rosen from Brooklyn, N.Y., shares his perspective in response to the article. Having several REITs in his portfolio, he has held them primarily for generating income. However, Harvey expresses his hesitation to invest further in REITs due to the current availability of insured certificate of deposits offering a yield of 5% or more. He also raises an interesting point by highlighting that most of the individuals advocating for buying REITs in the article are actually owners or managers of REITs.
Op-Ed: Our Deficit Time Bomb
Concerns About Fiscal Deficits and Debt Burden
To the Editor:
In reference to Randall W. Forsyth’s article “With Interest Rates Near Zero, Fiscal Deficits Could Be Dismissed. That’s No Longer the Case” (The Economy, June 30), I have always been skeptical about the ideas presented in ‘s 2019 interview with James Montier, “Why a GMO Strategist Is Bearish on U.S. Stocks but Positive on Modern Monetary Theory.” As time has passed, Forsyth has been proven correct in emphasizing the significance of debts. It is evident that Modern Monetary Theory (MMT) can be destructive.
- B.J. Khalifah
- Grosse Pointe Park, Mich.
To the Editor:
I applaud Randall W. Forsyth for shedding light on the imminent issue that we will face: the magnitude of our national debt and the cost of servicing it. While nominal interest rates presently hover close to zero and real rates remain in negative territory, this unusual circumstance is unlikely to recur unless we enter a period of deflation. Since inflation is currently growing at a rate nearly 2.5 times higher than the Fed’s target rate, we are far from such a period.
- Robert M. Sussman
- Paradise Valley, Ariz.
To the Editor:
Imagine stacking trillion dollar bills one on top of another to reach the moon; it would require approximately 3.5 trillion bills. Now, consider that our national debt amounts to 31 trillion dollars—ten times the distance to the moon. It seems that the economic policies of Bidenomics, Trumpinomics, and Obamanomics are hastening my journey to heaven. Thank you, gentlemen.
Weight Loss Made Easy
I almost choked on my oatmeal reading the comments from Eli Lilly CEO Dave Ricks in the column “Eli Lilly Is Riding the Weight-Loss Wave. Why Its Dominance Could Last for Years” (Streetwise, June 30).
Rather than dealing with the root causes of these problems, pharmaceutical companies are developing faux solutions to make billions of dollars when the answer is healthy eating habits and exercise to fight obesity. We don’t need more drugs with untold side effects adding to healthcare costs to feign an artificial workaround to a healthy lifestyle.
Recession Reality Check
To the Editor:
Amid the storm from the “nattering nabobs of negativity,” Andy Serwer stands out for recognizing the color of the current swan. It is white. In “There Won’t Be a Recession This Year. You Can Take That to the Bank” (Up & Down Wall Street, June 23), he lays out with simple clarity why there isn’t going to be a recession this year.
As a student of economics, I learned that some things are certain: There will always be periods of economic progress and there will always be periods of recession. It is also certain that even the most learned people won’t be able to predict the timing of each cycle of the economy with great precision.
Give Bulls Their Due
Stock Market Rallies: A Time to Be Cautious
A common statistic floating around is that the S&P trades at 19 times expected earnings, up from 15 times back in October 2022, as mentioned in Nicholas Jasinski’s recent Trader column[^1^]. However, Tom Lee of Fundstrat brings up a valid point. By excluding FAANG from the calculation and looking at the average price/earnings ratio, the number stands at a more reasonable 16.4, increased from 15.7 at the beginning of this year.
As we anticipate a potentially significant drop in inflation and witness earnings stabilize before moving upward, it may be time for bears like Mike Wilson and David Rosenberg to acknowledge the brighter side of things[^1^]. In fact, it would be refreshing to see articles highlighting the perspectives of bulls like Ed Yardeni, Tom Lee, and Ryan Detrick[^1^].
Rockwell Automation: A Solid Pick
I appreciate the recommendation to invest in Rockwell Automation stock in the recent Stock Pick article titled “Buy This ‘Tech’ Stock. Automation Is the Future”[^2^]. With an impressive track record of consistently surpassing earnings estimates for 16 consecutive quarters and a competent management team, Rockwell is undoubtedly a stock to consider. It’s wise to seize any pullbacks as opportunities and hold on to this investment for years to come[^2^].
Tom Quirk
Ellicott City, Md.
Rockwell Is a Solid Pick
To the Editor:
Your advice to investors to consider Rockwell Automation stock is spot-on[^2^]. With a remarkable track record of beating earnings expectations over 16 consecutive quarters and an exceptional management team, Rockwell Automation is a wise long-term investment option. Seizing an opportunity during any market correction and holding the stock over an extended period is highly recommended[^2^].
Sincerely,
Sonya March
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