The SPDR International Real Estate ETF (RWX) is down more than 1% today due, I believe, to a pasting in Spanish property stocks, a company called Astroc Meditteraneo in particular. This dominoed to other stocks in Spain which is why I think RWX is down so much today.
This may or may not turn out to be serious but the reaction in RWX is interesting. Foreign real estate is new for most folks. There are a lot of property markets around the world that are perceived as being overheated and it makes sense to expect that RWX will feel it anytime a dust up, like the one today in Spain, occurs.
I have no foreign exposure in this sector. Most clients own one REIT and a few people own two so the weight is not that heavy.
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Bloomberg had an article on this this a.m. Real estate and bank stocks are hit. Above is the link for those interested.
Hi Roger, you're right about Astroc. I wrote about this today on my blog. Astroc has lost 70% in a week but rose 1000% last year: from an IPO of just 6€ it got to over 70€ a while back. It has dragged other real-estate values, construction companies and banks with it.
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