Already did that. Nothing need be done in sequence . . . the walk down the street and chew gum at the same time sort of thing.
Yes, of course there will be rent losses . . . didn’t I say that? So what. The market knows this and is in the process of pricing the negative in . . . which is why they’ve been getting hammered so badly. By the time things get better, it’ll be way too late to invest.
The market looks ahead. That’s why it’s always been a challenge to do p123 style or any style quant work and way there is so much angst about in-sample and out of sample. We have to se historical data to look ahead, not backward, and that’s an art. Now, though, always is out the window. When we’re living through extremes, quant work really has to get shoved way way way way to the back of the plane, preferably locked in one of the rest rooms. That’s why I’ve been saying that now is not the time to be building models. It’sa time to be watching and learning and preparing for the ongoing regime change. Spend time out of the sims and ranks and more time in the panels, in 10-Ks, in conference call transcripts, etc. And use the screener very loosely (without backtesting) just to hunt for ideas; my suggestion was/is to search for stocks outperforming in this mess (maybe in a Rank> xxx with a ranking system you like) and then run down the ideas one at a time.
Don’t be afraid to buy something based on an investment case similar to the one Marco used as an intro to this thread. No quant stuff; just business judgment based on an idea that came to his attention. Use screening to pull potentially interesting things to your attention.
BTW, I’m dong other things too. A biotech ETF, more into new tech ETFs, and given that my view of the world suggests more inflation than we’ve known in a genration, moderate dabbling in GLD and an ag-commodities eTF. Actually, new tech is part of the inflation picture. If we don’t inflate heavily, it will likely be due to productivity gains and that’s tied to new tech. Toss in a few data center REITs, and that’s the salad I’ve been whipping up thjis week.