Direxion Daily Real Estate Bull 3X Shares ETF Stock Discussion

• Warren Buffed : This benefits from rate cut right? Cheaper loans?

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• 10baggerbamm OP Warren Buffed : it's not a matter of cheaper loans it's the real estate industry is the last man on the battlefield that has not rallied two multi-year highs or New Year highs.. the real estate industry has been kicked at a curb thrown out the baby with the bathwater pick a saying and it all commenced when interest rates started to rise several years ago. when you compound rising interest rates with covid where everybody left office buildings were they sat vacant where the Dynamics of working from home changed the need for these large corporations to rent commercial properties all of these stocks as a result were taken out behind the barn and beaten like a redheaded stepchild. fast forward several years many of these companies in this real estate investment trust owned the properties that are being used for data centers oh my God that's amazing that's what everybody wants is real estate that's prime real estate because that's where the future is. the balance of properties are in key cities that are the best cities in the country where real estate is highly sought after where properties are 95% leased and new leases are setting all-time highs again. so absolutely when interest rates fall people will look to invest in real estate because the ability for these properties to be refinanced is much easier number one number two they pay dividends and when these companies start generating profits again and huge profits they will generate they will spin off those profits in the form of much higher dividends so they will raise the dividends going forward and money chases yield in a declining rate economy so you have all of these factors of why this basket is going to go significantly higher

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• Warren Buffed 10baggerbamm OP : Whoa, very detailed analysis, need time to digest

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• 10baggerbamm OP Warren Buffed : okay how about this
  "yes"
  is that easier to understand?

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• Warren Buffed 10baggerbamm OP : Ahhh thats it

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• 10baggerbamm OP : another point of fact that is really never talked about has to deal with the fact that most real estate investment trusts by design kickoff a high dividend to their shareholders. and this obviously is done to minimize tax liability. what has happened with most real estate investment trust over the past several years especially since covid is they've cut their dividend significantly or eliminated it many of them have. now that there's a normalization taking place where companies are requiring people to come back to work in an office environment number one number two many of these properties are being repurposed and turned into other uses they're turned into Data centers things of that nature so the low rental rate of some of these properties are now fully rented or approaching 95% which is very profitable so where I'm going with this long twisted convoluted explanation
  .. you are going to see many of these real estate investment trust begin to raise their dividend every quarter because they're now generating profits again and when you are in a declining rate environment which is what we are approaching with the feds planning on cutting for about 240 basis points is what the estimate is so 2.4%. money is going to search for yield and historically when properties are rented real estate investment trusts are a very good source of dividends. so right now nobody is talking about this there's not a single person online none of the bobbleheads on tv nobody but I guarantee you they will in short order.
  and remember where you heard it first.

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• Turnbuckle : T Y

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• 10baggerbamm OP Turnbuckle : this is where it's going you see that white line I'm banking on it and once it comes close to this it's going to be much much higher but this is the minimum that I see in 2025.

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• Salmon Klein : I just bought the dip master!!

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• 10baggerbamm OP : if you want to make money you have to be ahead of the curve. I started buying utilities when nobody wanted them July August September and October November last year utilities just hit a multi-year high this past week.
  I was buying the leverage gold ETF last year watching gold go up to 1900 no one's buying the mining companies gold has broken out the 2500 mining company stocks have gone through the roof.
  this leverage ETF needs interest rates to go down but what you're starting to see are institutions accumulating positions ahead of the curve ahead of the rate cuts. nobody likes a sector nobody on TV is talking about the sector because they haven't built large enough positions yet once they start pounding the table it is too late because they will be selling to you.
  with reversion to the mean it's 18 short term by February next year and I believe with a little momentum we will see minimum $20 very realistically and once momentum starts and everybody is observed it people will accelerate their buying which will take this basket within a year and a half so December next year 25 to $30.. at that point we will have had five to six rate cuts probably more and money will be flowing back into the sector every day and people will be saying I like the real estate sector there's certain key sectors within the commercial like the companies that own the data centers that rent that are enormous profit margins well guess what's in this portfolio those companies and others.

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• 10baggerbamm OP : to those that want to buy the call options and I posted what I thought was a good trade yesterday and actually in the past it took me all day yesterday to get a hundred contracts purchased and I was five cents above the bid initially I bid it and there was one other person that went on top of me for a few contracts he got filled and then I sat all day long. there's a very big spread between the bid and ask do not pay the ask be patient and go a nickel above the bed figure out what strike you want to do whether it's a $12 or higher up and I went out Feb 25

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