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the most astonishing thing about this is that he's been able to find anyone willing to go long on malls in the last 10 years. i want to read the article about

the most astonishing thing about this is that he's been able to find anyone willing to go long on malls in the last 10 years. i want to read the article about what the hell those people are thinking.

ak217 10y ago
Passive investors? i.e. if a large mall REIT is publicly traded, especially in the S&P 500 etc, cash will flow into its long positions simply by virtue of that.
- sigstoat 10y ago
  if such a REIT existed, that'd make some sense, but it sounds like there's nothing quite so simple, or else this guy would've been able to short more easily and directly than he did. (or maybe there's not enough volume/whatever to have been able to short said REIT to the desired degree?)
  - burkaman 10y ago
    From another comment, there are some: https://www.google.com/finance?cid=431242 https://www.google.com/finance?cid=431242 and https://www.google.com/finance?cid=656855 https://www.google.com/finance?cid=656855 These might be too narrow for his purposes though.
  - dontreact 10y ago
    The Vanguard REIT's largest holding is Simon group, which owns a lot of malls. I don't think that REIT would be a good vehicle for shorting malls because there is so much else in it.
lithos 10y ago
This has been an off and on issue on bloomberg radio for a while now. A couple of weeks ago it stayed a topic for so long (days in a row). That I also find it surprising. Sometimes going against the market can be profitable when it falls in your favor. Wouldn't be surprised if malls and retail space gets some sort of bailout. Especially with "X our jobs" (bring back, protect, stole) mantras that have been panning out really well politically.
- zeroer 10y ago
  I hope not. The writing's been on the wall for ten years.
- sjg007 10y ago
  They've basically had to innovate (e.g. renovate) or die. A lot of mixed used as well. This is difficult for colder climates in general.. but you get outdoor malls with restaurants, shops and apartments/condos and maybe a hotel. Even then it can be difficult. Just like the large downtown department stores that went a while ago.
  - ghaff 10y ago
    >Even then it can be difficult. Yep. The other problem is that if you're going to try to make your shopping mall vaguely mimic Castro Street in Mountain View, in addition to climate you're going to need Mountain View-like demographics. I can pretty much guarantee you that the shopping mall nearest to where I live that has JCP and Sears as two of its anchor stores isn't going to support a boutique hotel and swanky ethnic restaurants with sidewalk seating.

the most astonishing thing about this is that he's been able to find anyone willing to go long on malls in the last 10 years. i want to read the article about what the hell those people are thinking.

ak217 10y ago

Passive investors? i.e. if a large mall REIT is publicly traded, especially in the S&P 500 etc, cash will flow into its long positions simply by virtue of that.

sigstoat 10y ago
if such a REIT existed, that'd make some sense, but it sounds like there's nothing quite so simple, or else this guy would've been able to short more easily and directly than he did. (or maybe there's not enough volume/whatever to have been able to short said REIT to the desired degree?)
- burkaman 10y ago
  From another comment, there are some: https://www.google.com/finance?cid=431242 https://www.google.com/finance?cid=431242 and https://www.google.com/finance?cid=656855 https://www.google.com/finance?cid=656855 These might be too narrow for his purposes though.
- dontreact 10y ago
  The Vanguard REIT's largest holding is Simon group, which owns a lot of malls. I don't think that REIT would be a good vehicle for shorting malls because there is so much else in it.

lithos 10y ago

This has been an off and on issue on bloomberg radio for a while now. A couple of weeks ago it stayed a topic for so long (days in a row). That I also find it surprising. Sometimes going against the market can be profitable when it falls in your favor. Wouldn't be surprised if malls and retail space gets some sort of bailout. Especially with "X our jobs" (bring back, protect, stole) mantras that have been panning out really well politically.

zeroer 10y ago
I hope not. The writing's been on the wall for ten years.
sjg007 10y ago
They've basically had to innovate (e.g. renovate) or die. A lot of mixed used as well. This is difficult for colder climates in general.. but you get outdoor malls with restaurants, shops and apartments/condos and maybe a hotel. Even then it can be difficult. Just like the large downtown department stores that went a while ago.
- ghaff 10y ago
  >Even then it can be difficult. Yep. The other problem is that if you're going to try to make your shopping mall vaguely mimic Castro Street in Mountain View, in addition to climate you're going to need Mountain View-like demographics. I can pretty much guarantee you that the shopping mall nearest to where I live that has JCP and Sears as two of its anchor stores isn't going to support a boutique hotel and swanky ethnic restaurants with sidewalk seating.