Why Is The Smart Money Suddenly Getting Out Of Stocks And Real Estate?
Michael T. Snyder | May 31, 2013 02:21AM ET
If wonderful times are ahead for U.S. financial markets, then why is so much of the smart money heading for the exits? Does it make sense for insiders to be getting out of stocks and real estate if prices are just going to continue to go up? The Dow is up about Businessweek article .
Hedge fund manager Bruce Rose was among the first investors to coax institutional money into the mom and pop business of single-family home rentals, raising $450 million last year from Oaktree Capital Group LLC.
Now, with house prices climbing at the fastest pace in seven years and investors swamping the rental market, Rose says it no longer makes sense to be a buyer.
“We just don’t see the returns there that are adequate to incentivize us to continue to invest,” Rose, 55, chief executive officer of Carrington Holding Co. LLC, said in an interview at his Aliso Viejo, California office. “There’s a lot of -- bluntly -- stupid money that jumped into the trade without any infrastructure, without any real capabilities and a kind of build-it-as-you-go mentality that we think is somewhat irresponsible.”
So what does all of this mean?
Is there a reason why the smart money is suddenly getting out of stocks and real estate?
It could just be that the insiders are simply responding to market dynamics and that many of them are just seeking to lock in their profits.
Or it could be something much more than that.
What do you think?
Why are so many insiders heading for the exits right now?
Feel free to post a comment with your thoughts below...
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