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Thursday, July 5, 2007

Investors Shun `Falling Knife' of Real Estate Stocks.

No, this is not a US headline. This a European headline.

" Rising interest rates and declining profits from real estate are pushing investors to ditch European property stocks after a four-year rally. "

Buy the dip? Find a bargain? Not even close...

" The dividend yield, or what a company pays to investors as a proportion of its share price, is the lowest ever for real estate companies, according to JPMorgan Chase & Co. That suggests the stocks have more room to fall before they become a bargain. "

The leaders on the way up, are the leaders on the way down. The Bank of England just raised rates too.

" Stocks in the U.K. and Spain, the markets that led the boom, have been hurt most in the recent slump. "

Source: Investors Shun `Falling Knife' of Real Estate Stocks (Update3) (