EWRE has been in an upward channel vs. the S&P 500, and is currently near the bottom of the channel. That makes it an attractive buy today, especially after last week's extremely positive housing report that showed rents and property values rising and mortgage rates and inventory numbers falling.
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I revisited this Friday and decided to take profit on the trade. Here's why: the outlook for the housing market is quite bad. This year's earnings for the fund are expected to be worse than last year's. That's especially bad because the P/E for EWRE is already outrageously high at about 37; forward P/E is even higher at 43. Price-to-book is also relatively high at 2.88. The distribution yield of about 2.5% is respectable, but you can find better distributions elsewhere in the market. I may buy back in if this comes down quite a bit later this year.