To the Editor:
This past week’s cover story, “Real Estate Stocks Are on Sale. Where to Find the Best Deals.” (June 30), provided a comprehensive overview of the entire out-of-favor commercial real estate sector. The mind boggles at the choices. An easier route might be through the largest real estate exchange-traded fund, Vanguard Real Estate Index (ticker: VNQ). The one drawback here is that the top 10 stocks make up 50% of the portfolio. An alternative is the equal-weighted Hoya Capital High Dividend Yield (RIET). These ETFs provide exposure to the entire sector while avoiding a stumble inherent in individual stock selection.
Harvey Rosen
Brooklyn, N.Y.
To the Editor:
I have several REITs in my portfolio and will hold them for income, which is primarily why I purchased them in the past. But when I can get 5%-plus in an insured certificate of deposit, there is no way I am putting another dime in REITs for the foreseeable future. I also find it interesting that most of the people cited in the article who say now is the time to buy REITs are owners/managers of REITs.
Mike Schoener
On Barrons.com
Our Deficit Time Bomb
To the Editor:
Regarding Randall W. Forsyth’s “With Interest Rates Near Zero, Fiscal Deficits Could Be Dismissed. That’s No Longer the Case” (The Economy, June 30), I never believed the concepts from Barron’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 proved, Forsyth is 100% correct that debts do matter. MMT is a destructive idea.
B.J. Khalifah
Grosse Pointe Park, Mich.
To the Editor:
Kudos to Randall W. Forsyth for focusing on what will inevitably be a growing problem: the size of our federal debt and the cost of servicing it. Nominal interest rates at close to zero with real rates in negative territory is an aberration not likely to be repeated unless we enter a period of deflation. We are nowhere near such a period, as inflation is growing at almost 2.5 times the Fed’s target rate.
As the graph from the CBO shows, net interest on our debt will require 32% of all government receipts by 2050 compared with less than 14% currently. This will inevitably become an unbearable burden for our children and grandchildren. It’s the most extreme case of “kicking the can down the road” I have ever seen.
Robert M. Sussman
Paradise Valley, Ariz.
To the Editor:
It takes about 3.5 trillion dollar bills placed one on top of the other to reach the moon. Our debt is 10 times that much—31 trillion. It looks like Bidenomics, Trumpinomics, and Obamanomics are going to get me to heaven sooner than I thought. Thanks, guys.
Walt Wenk
Sarasota, Fla.
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.
Jim Hackett
On Barrons.com
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.
David Ingraham
Carlsbad, Calif.
Give Bulls Their Due
To the Editor:
Nicholas Jasinski’s latest Trader column (“Stock Market Rallies Because Good News Is Good News. But It’s Still a Time to Be Cautious,” June 30) cites a worn-out statistic that the S&P trades at 19 times expected earnings, up from 15 times in October 2022.
However, as Tom Lee at Fundstrat has pointed out recently, if you remove FAANG from the calculation and examine the average price/earnings ratio, it’s a reasonable 16.4, up from 15.7 at the start of the year.
With inflation poised to fall fairly dramatically and earnings starting to bottom and point higher, perhaps bears like Mike Wilson and David Rosenberg will finally recognize that things aren’t as gloomy as they keep forecasting.
Please consider doing an article with bulls such as Ed Yardeni, Tom Lee, and Ryan Detrick. That would certainly be refreshing.
Tom Quirk
Ellicott City, Md.
Rockwell Is a Solid Pick
To the Editor:
You are correct to steer investors toward Rockwell Automation stock (“Buy This ‘Tech’ Stock. Automation Is the Future,” Stock Pick, June 28). Rockwell has beaten earnings estimates for 16 quarters. Great management team. This is the kind of stock to purchase on any kind of pullback and hold for years.
Sonya March
On Barrons.com
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