7 Burst results for "Armada Etf"
Bloomberg Radio New York
"armada etf" Discussed on Bloomberg Radio New York
"Trading and loans getting underwritten by the way, it's not all about New York, even though we think. Yeah, I need to get on a road a little more. Is it all about New York? No, you're from Austin, right? You're from Dallas. Sorry, but you went to UT. I did. I was just down in Austin, and it was sick, and there were cranes everywhere, right? They're just putting up buildings left and right. They can't build them fast enough. So I'm not saying specifically there, but there are places around the country where it's still very busy, very popular, and people may even want to go to an office. Some as we've discussed, we run the residential REIT income ETF tickers house HA U.S. and one of our focuses is looking at where the migration trends are happening. And as a result, you've got Redfin Zillow, costar, all these data sources that are telling you, here's where the demand is, Nashville, Charlotte, Austin, Tampa, Jacksonville. And as a result, look at the city skylines and you see all the cranes and the question is, where are all these people going to live? And so it's these residential REIT guys because of how crazy the home ownership market is right now. They're the ones that are in the driver's seat to inherit all that potential office worker demand in those sought after markets. Japanese talk to institutional investors, where in the reach space do they really want to be these days? Not office. Other than house. Honestly, there has been a kind of sector wide push down on prices. And I think that that's just rising rates have impacted across the board. Fear of that maturity wall that this kind of CRE fear. But some of the sectors that I mentioned up front are kind of still going strong. Warehouses, multi-family, medical office, life science. Necessity based retail. The grocery, the grocery anchor shopping center, the Starbucks, the CVS, Dwayne Reed Walgreens. Yeah, people are out there spending. And Madison Square Garden. Masses work hard for fish concerts. Vicious coming back to town. Are you going Jeff? This is where I drop out of this. He drops out of the conversation. All right guys, thanks so much for coming in. We had a cool cool round table talking about all things real estate here. We did with Jeff langbaum. He's the senior REIT analyst at Bloomberg intelligence and David auerbach managing director armada ETF advisers talking about the real estate biz and office real estate a little tough, particularly in some of those coastal cities like New York and San Francisco, but other areas doing well. Right now let's head down to Washington
Bloomberg Radio New York
"armada etf" Discussed on Bloomberg Radio New York
"Here on Bloomberg radio. I'm John Tucker, and that is your Bloomberg business flash Matt and Paul. Hey, John Tucker, thank you so much. We appreciate that. Let's talk real estate here. I have a renewed interest in real estate having gotten back into the market as a landowner state of New Jersey. But we want to talk real estate, REITs, all that kind of good stuff, David auerbach joins us. He's a managing director, armada, ETF advisers, but I see on David's when you talk REITs, you got to see green street advisers on there somewhere and sure enough, he was a former VP at green street advisers, some of the top folks out there with research on the REIT business. So we did a tour there. Hey, David, talk to us just briefly here. We got interest rates rising really over the last 12 months at a rate we've never seen before. That can't be good for real estate. So how do you, in your world, look at real estate today? What's your call? First of all, Paul McKinnon, thank you again for having me. Talking about my flip a switch a little home green street. David auerbach. I hear him fine. Oh, okay. I think it could be. There we go. Headphone problem. David, we hear you good, man. Sound check. Successful. Sound check before the show. I appreciate the green street mention. My former home and yeah, you're right, definitely the preeminent REIT and research shop. You know, when we talk about the current environment of reefs in a rising interest rate environment, my approach is to focus on the fundamentals. We are with us focused on the residential REIT income ETF, our ticker is house HA U.S.. We're looking at the residential REITs focused on that rental income. So from a fundamentals perspective and a strong employment environment that we're experiencing, the rent is paid. A lot of the rental players have tailwinds in their favor, which should lead to a pretty decent first quarter earnings season for many of these single-family rental players, the multi-family REITs and other players that are in the sector. Well, so everything's good now, but what happens when they have to refi at these rates? Well, that's a great question, Matt, and you know what's interesting is we published a blog recently looking at the balance sheets of our top ten constituents. And what we've noticed is that, first of all, we're operating in a ten year environment right now looking at my Bloomberg of three 42, much different than what we experienced during COVID when the tenure was trading around one and a half percent, much different than just a few months ago when we were training near 4%. And so as a result, because of what happened during COVID, many of these reach were able to take advantage of basically unprecedented lending conditions to really well capitalize their balance sheets. And then our blog that I mentioned, we talk about the top ten holdings of looking at their debt maturities. Pretty much across the board, we say that right now for our guys, right now, the average debt maturity over the next three years is about 20% of the stack, no company is rolling more than 30% over the next three years. We say right now, the weighted average customer maturities about 8 years with an average weighted interest rate about 3.6% to pretty much right online with the ten year where we're at right now. With many of these guys predominantly with fixed rate debt, I don't see it being an issue at this point. And hopefully by the time that really comes into play, we will see Federal Reserve interest rates being in a more manageable level. And David, I know you guys focused on the residential real estate biz, so that's regional, big time reason. I guess the pandemic is just exacerbated the regional differences. So is it just as simple as go long the sun belt? You know, I wish there was that simple because that was the answer, Matt, you and I be traveling cross country on my G 5 going to see all the shows we want to see. Unfortunately, you know, first of all, location matters. We have firms that are out there. We all see them everyday costars, zolo, real page, Redfin, et cetera, that are telling us where those migration trends are going. And one of the key takeaways here is that if you recall during COVID, pretty much there was this mass exodus from the coast from New York, San Francisco, LA. And what we're seeing, especially out of companies like F 6, which is a West Coast based apartment REIT, people are coming back. And so as a result, though, the sum don't remains very resilient. You are seeing pockets of strength happen again back in certain parts of New York City, San Francisco, LA, some of the southern parts of California, where there are tenants that are moving back into those properties. Interesting. So people are well capitalized. They got right with rates during SERP. And. The tenants are moving back into the properties they abandoned on the coasts. What about costs? You know, we were just talking with Gina Martin Adams from Bloomberg intelligence and she was saying, the market broadly priced in a recession last year. And so we just need to see that hit the street. But the only concern she has when we get earnings this quarter is that companies need to deal with costs. They should hopefully already have taken care of them, but maybe they need to into the second quarter. What about REITs? Great question. And obviously, Gina always delivered the goods, but she's either on TV or radio system, tough guests for me to follow up on a couple of bits here from a cost perspective that is always in the Wheelhouse of every single REIT management team trying to focus on. Can we maximize our revenues through growth and how can we minimize our expenses through expense control, whether that's utilizing smart technology, potting concept, a potting concept would be, let's say you have three residential properties within a two mile radius, you could use, let's say, one or two maintenance skies across all three properties opposed to planting one at each location. So I think with these guys focused on trying to maximize the bottom line, the NOI number, that's expense control place into it. But from a very high level, right now, the rental market remains strong. You're talking about 30 year mortgage rates that are above 7%, housing affordability is out the window, especially if you're in one of these desirable markets. So for those factors alone, that benefits the rental landlord. Remember, we're focused on rental income that rental income that you pay to the landlord as your monthly rent payment goes into investors pockets in the form of dividend income. And that's what we're focused on as the rent goes up. That dividend hopefully should go up at the end of the day as well. So I'm looking just at the S&P 500 real estate investment trust index and year to date, it's kind of flat up a little bit. Where are the REIT stocks relative to, say, NAVs right here is our value in REITs or in a rising real real estate or rising interest rate environment just maybe don't want to get near them. Let me get a little pedestal here and give you the four one one on four 11 there. Public traded REITs are trading at a massive discount to net asset value. That's unlike some of the private vehicles that are out there talking about them trading at premiums to net asset value. Historically, though, and if you go back to some may read the national association of real estate investment trust, some data over the long term and rising periods of rising interest rates reach are the sector that you want to be invested in. Traditionally REITs have been that usual go to during flights to safety because again of that dividend income stream. And so until we do see a major reset in this interest rate environment, we're focused on those strong pockets and fundamentals. Taking it outside of residential, there's a reason why company sectors of industrial REITs recent tower REITs continue to remain very strong because these are properties and sectors that are being used every single day. Salt storage, there's a merger that's going on right now between extra space storage or tickers EXR and light states life space storage ticker LSI. And so there are some tailwinds in that storage space. Remember, we're all hoarding more and more stuff. Matt, I can't go to a show without buying another T-shirt or a magnet. So that just adds up to the storage unit. And so as a result, these are sectors that are just going to continue to grow. It's those other sectors that are right now, everybody check cares about offices and malls. And what's the long-term future for those sectors? I wish I knew the answer to that. But I can tell you that there are definitely a long road ahead for residential REITs as far as that maintains strength. Don't get me started on malls
Bloomberg Radio New York
"armada etf" Discussed on Bloomberg Radio New York
"So they become good, kind, human beings. That's dedication. Find out more, at fatherhood dot gov. Brought to you by the U.S. Department of Health and Human Services and the ad council. Broadcasting 24 hours a day at Bloomberg dot com and the Bloomberg business app. This is Bloomberg radio. This is Bloomberg markets with Paul Sweeney and Matt Miller. We got a lot of green on the screen here, but the volume is light under promise over deliver always been a great strategy. This is a market that's much more optimistic for bullish than maybe central bankers are. Breaking market news and inside from Bloomberg experts. There's still some concern out there in the market that there is room for things to deteriorate a little bit more than what they're indicating. A small and medium sized businesses struggle, they don't present as much competition. The supply chain is still got dislocations globally and here in the U.S.. This is Bloomberg markets. With poles we need at Matt Miller on Bloomberg radio. All right, good Tuesday morning from the Bloomberg interactive rumor studio in New York City to our worldwide audience coming up. We're checking with Gina Martin Adams. She's a senior equity strategist at Bloomberg intelligence. We need to figure out what she's going to be looking for during this earnings season. And David auerbach, he's a managing director at armada ETF adviser. So we're talking ETFs and flows and all that kind of good stuff. And then talking about stocks Colin mcway portfolio manager with heartland advisers. He's going to join us and give us his market call right here as we head into a big earnings season and a big ego calendar this week. But let's kick everything off, folks, we do it with John Tucker with a Bloomberg business wish. All right, Paul man, I'm going to say investors may be cooling their heels in a holding pattern. The S&P 500 little change right now, best performing industry group does belong to materials, and the biggest drag right now is coming
Bloomberg Radio New York
"armada etf" Discussed on Bloomberg Radio New York
"All right, John Tucker, thank you so much. We appreciate it. You know, one of the things we do. We always appreciate John, we really appreciate it. We really do. I mean, we're not just saying. Sometimes I feel like John doesn't get to love. That he deserves. You know? Maybe we should find him. A cake, a cake. Yeah, yeah. Okay. My birthday's in June. Birthdays. All right, we'll wait till June, then no, no need to run. We'll bring it. We'll bring it down the shore. Absolutely bring it down to shore. Looking at some companies here, Matt one of the ones that got my attention is DH Horton, one of the biggest U.S. home builders, they beat estimates, and they saw demand pick up a little bit in January. So maybe the market kind of coming back here. The stock's up about 2% today. It's up 9% year to date, so very interesting here about the housing market. Interest rates hire mortgage rates higher, of course, pulling a lot of people out of the market, but maybe the market is starting to stabilize a little bit on the housing front there. Well, you know what? We're going to get an expert opinion on that right now. Are we? No. I have a buddy David auerbach. He's managing director at armada ETF advisers and also a fellow fish fan. Oh, we actually went to see the New Year's Eve shows together. One of them. Yep, at Madison Square. How was it? It was amazing. I have to say it was fantastic. But the funny thing is, so we're sitting there and we had a sweet couple of seats. Nice. Of course. Great view, the light show was insane. And in the second set, we get into this deep Spacey discussion about mall REITs. And I thought, you know what, in this entire stadium and no one MSG, nobody else is talking about Molly. Thanks right now. Let's bring in David on the phone joining us at a Texas. Great to have you on the program, David. Let's start by talking about the situation that the real estate industry or the residential real estate industry finds itself in right now. We'll get to the malls later. But you run house. Which is an ETF and actively managed ETF that invests in publicly traded REITs. Talk to me about the state of your industry. Well, good morning. Thanks for having me back on the air and of course I'd rather talk about our fun experience, but right now in the world of publicly traded REITs, you know, we see really a lot of upside. As you know, after the volatile 2022 results, a lot of the REITs are coming out basically forecasting, we're not going to have as great of a year NOI growth and really crush it like we did last year because last year was almost unprecedented for some of the residential REITs. But these guys are still forecasting growth. And in the wake of rising interest rates and rising inflation, we're focused on that end rental payment. We call it the residential REIT income ETF because we say that the rent payment goes into your pocket as income in the form of dividends and pretty much across the board. These residential REITs have been raising their dividends over the past couple of years. Through COVID. That's great for Paul. Paul, how good is you love dividends? I loved him. And to love coupon payments, that's good stuff. So has the residential real estate market. I mean, is it still adjusting to this higher mortgage rate environment? Has it steady? What are we seeing here? Yeah, it's definitely adjusting. There's no question about it. Some of the home sales numbers that have been coming out recently though they're somewhat kind of dated results are showing somewhat of a turnaround compared to what we have seen in the mid second half of the year last year. I hate to use the term and everybody kicks around that new normal. Look, interest that interest rates have gone from zero to four and a half percent mortgage rates went from like two to 6, three to 6% last year. We're in this 6% mortgage range right now. And so I think people are accepting it. The problem is that, hey, I got this great job opportunity from Dallas, Texas to New York. And I'm trading my two 7 5 mortgage for 6 and change mortgage in New York. I'm basically locked in. I'm kind of geographically constrained at that point. And so from the rental payment from the rental side, you know, unless you're in the market to go out and buy that house right now, you're really focused on what's my end rent payment going to be next month. Is it going up 10%? Or is it going up a 100%? Well, I mean, so many people who haven't been able to buy have been put in that position. In terms of the investment though, David, for those listening who don't quite get the ETF functionality, how does that work? When you get paid dividends by the public reads you invest in, how does say Paul buys a share of house? How does that come through to him? It's a great question. It basically is passed through directly to the end shareholder. We pay a quarterly dividend and it's basically a culmination of the income received from our underlying constituents. Our fund owns 25 publicly traded REITs. Those are comprised of apartment REITs, single-family rental REITs, manufactured housing, senior housing. All of these companies are reporting monthly and quarterly dividends that adds up and that's basically it then goes into your pocket at the end of the day as a shareholder in the form of a dividend. So it's just like any other stock. So if Paul calls his guy a pain Webber or wherever. And he says, turn around for a while. And says you just reinvest those dividends, or they just cut them a check every quarter. That's right. Right. And Paul striking probably more of who they want Robinhood type of guy who is more ahead of the curve there. But yes, that is correct. Again, ETFs are publicly traded vehicles. They trade just like stock, bid ask spreads, trade throwing market hours. We've highlighted that liquidity. Matt, you and I talked about the private versus public and what we've been seeing in some of the private REITs that's out there talking about gaining redemptions, investors having a hard time pulling their money out. They're never going to be able to get out of this maze of trying to capture their investment. And so for us, we're highlighting the liquidity of publicly traded REITs and ETFs. You want to put a $1 million into House thank you very much. You can pull out a $1 million of house very quickly just as well versus you may have a harder time at some of these private vehicles right now. So David, you talked about mortgage rates up that 6% range. Is the expectation that a lot of folks are saying the fed's going to be cutting rates at the end of this year or early next year. So are the mortgage folks you talk to saying, hey, the mortgage rates will come back down along with the fed? Yes, the answer is yes. Mortgage rates highly traditionally do tend to move hand in hand with interest rates. If we do see that correction coming back in later in the back half of the year, yes, I would expect to see that. However, at the end of the day though, until we really see the mortgage rates go back from, let's say, 6% to a more manageable level of 4%. I still think we're going to see some pop determinists in the housing market. What does this, what are these big changes? And I mean, I don't know, when's the last time the fed raised 450 basis points in a year. What do they do to ETFs and net asset values? I mean, they're bigger and bigger divergences, right? How do those fix themselves? Well, for us, again, we're looking for us at the residential REITs and focusing on the underlying constituents themselves. I will highlight that many of these REITs took advantage during COVID to recapitalize their balance sheets and were able to lock in very long-term debt at a very attractive rates. So unfortunately, I can't control as I tell people, I can't control my ETF stock price. I can't control my constituents stock price. All I can focus is on the narrative, highlighting how well capitalized these companies are. And I focus on the fundamentals. And usually at the end of the day, Mattis, we talked about, I take your favorite Wall Street stock, REITs, Apple, Microsoft
Bloomberg Radio New York
"armada etf" Discussed on Bloomberg Radio New York
"Interactive broker studio in New York City to our worldwide audience coming up. We're going to check in with Ira Jersey Bloomberg intelligence. Get his thoughts on what his Federal Reserve is going to do next. I'm going to talk about ETF flows. David auerbach managing director armada ETF advisers get the latest on ETFs. And again, I want to hit this story that's up Morgan Stanley investment management. That's the asset management arm of Morgan Stanley. They're saying emerging markets are set to be this decades winners. And I've heard that from others as well. So we'll break that down as well. But first, let's go to John Tucker and get a Bloomberg business flash jump. We're always stated dependent, so let's stretch off with some data. You did a spot PMIs with Lisa, a little earlier, Paul, the fed, Richmond fed manufacturing index coming in lower than expected down 11 the Richmond fed business conditions index. That's a little better than we had last month. Last month it was down 14 right now down ten. Ily S&P 500, you have ten of the 11 major industry groups lower right now. A loan sector in the green that belongs to consumer discretionary stocks, that's where you find shares of Tesla up over one and a half percent. Stocks are lower as we wait the latest batch of earnings. We're going to get tech heavyweight Microsoft that comes after the close of regular trading today. Drew Mattis had met lives as the data we've seen so far clearly indicates a slowing economy or even worse. Maybe the debate shouldn't be, are we going to have a recession, maybe we actually should be having a debate? Are we in a recession and something is holding up the labor market? And how long can that something hold the labor market up for? Right now, the broader index the S&P 500 twenty two points lower that's down about 6 tenths of a percent. Just under 4039 97, the tech heavy NASDAQ 156 points lower. That's down half a percent. The Dow Jones Industrial Average down 165 points, that is down to half a percent. Ten year yield right now is off to basis points at the latest batch of data right now at three 53 the two year is up one basis point at four 24. We check the markets all day long for you right here on Bloomberg radio. I'm John Tucker, that's your Bloomberg business flash. Matt and Paul. John Tucker, thank you so much for that. We
Bloomberg Radio New York
"armada etf" Discussed on Bloomberg Radio New York
"You so much. We appreciate that. I think it's time for a macro minute. And for that, we turned a pretty good Bloomberg markets correspondent. What do you got for us? What a novel idea. Yeah. Let's talk about the bond market here. It's not getting any attention. I feel like because of all of the kind of chaos happening in the UK guilt curve here, but take a look at the ten year yield is doing. We're looking at three 77 on the ten year yield, a 17 basis point move and Paul, it's only 11 a.m. in New York. This is wild and I think it really speaks to the question of liquidity that you're starting to see in the bond market as you start to see people. Right. Of people pulling out of the guilds market, there seems to be some sort of haven bit into the ten year. What's interesting, though, is that it's having kind of an opposite contagion effect. The idea here being that if you are worried about getting exposure to the UK guilt curve, which a lot of people are right now, I think there's a story about UK pensions being at risk as well. What is the alternative to that? Do you then hop into the U.S. bond market as kind of the antidote? And I think that's a question a lot of people are asking clearly when you see the ten year yield yesterday though, it was the opposite story. The U.S. bond market was moving in the same direction as the UK guilds market. It was kind of like a contagion effect. Today you're seeing it in reverse. So that's what I would keep it wags the dog, right? Absolutely. And I would also look at the two year yield because it's the same story, both the front end and the long end all getting beds on the U.S. side. Very interesting stuff. Good movement. That's a macro minute right there. That's right. That's a matter. You hate to talk about single stock names. I did that, but 10 a.m.. She likes to talk about the macro. So we're getting to know crude a lot better. Exactly right. All right, create a good Dublin Bloomberg markets correspondent. I want to bring in our next guest alo tero. He's a portfolio manager at armada ETF advisers. And they've got a U.S. REIT ETF HA U.S. talking about the housing market. We had some pending home sales today, month on month, it was down 2%, the consensus was for a decline of 1.5%, but on a year on year basis, that's how I like to look at it. It came in at -22 and a half percent. So it looks like this housing market rolling over. Al, thanks so much for joining us here. Talk to us about your HA U.S. REIT ETF and kind of what you're trying to do with this ETF. And then love to get also your overview, just kind of this where we are in this housing market. Sure. Terrific. Good morning. Thanks so much for having me. Yes. And our model ETF is a relatively newly formed advisory firm houses our first product. We basically have backgrounds in the REIT industry in the ETF industry and then also in the direct real estate industry. And the goal with House was really and our founder was looking at about two years ago and we're looking for a residential read ETF. And he said, gee, one doesn't exist. Maybe we need to create one. And that's exactly what he did. We launched a fund back in March. And again, it's residential ETF. So it is certainly housing related to the extent that what goes on in the residential market that multi-family single-family rental manufactured housing certainly a correlation there with the single-family housing market. But again, the goal here is to number one current income, number two, hard assets, predictable cash flows, attractive dividends that are growing and attractive rate, strong balance sheets. So lots of lots of good characteristics that roll up into the residential REIT market. So what do the flows look like thus far? What are you looking at in terms of assets under management? Sure, we're tiny guys. We launched back in early March. We have a couple of several $1 million in the fund right now. We launched into a bit of a volatile environment. I think a lot of folks that we're talking to like the idea, residential REITs and residential real estate. Again, broadly defined, as I mentioned earlier, I'm not just housing has been a favored part of the investment landscape landscape for a very long time. Again, rent growth more recently has just been off the charts, certainly that starting to moderate and I think it's a good thing, but as we look back over the last quarter two quarters that we talked to our constituent companies, you hear the work historic getting tossed down a lot, we have had historic rent growth we've had occupancy levels and can it retention resident retention levels that have really just been off the charts. And lots of that has to do with some of the structural change that have gone on in the market over the last couple of years. But we continue to see good demand. For this product. I can imagine if you'd launched at the beginning of 2021, you'd just be shoveling out cash, right? But you come in at a time, well, basically at the peak, right when I bought my house, you launched your house. And I feel like I got the very top price I possibly could have paid. But at a low, I did at least get a little rate. And now we're looking at mortgage rates up over 7% in some cases, is this, you think, is this part of the problem for House? And do you have other products that you're looking to launch around this? Sure, the second to your answer is second question. Yeah, we are looking at other products to launch around this. But maybe the heart of the matter again as it relates to housing and it's a long-term investment long-term investment. You recently bought your house. You're going to hopefully be in there on average, right? 15 years or so, there are about. So it's a long-term investment. Obviously, historically, HPA house price appreciation has been inflationary plus so there's a hedge against inflation there. Market timing is always so difficult, but we've seen opportunity, especially when you look at what's going on in the housing market and as that home prices have gone up so much, it really tends to also keep residents in apartments longer. And that's I think one of the interesting things about what we're seeing today in the rental market, there's an affordability problem with homeownership today and that affordability gap between owning and renting makes it still a very attractive proposition to rent. And we think that's a proposition that's going to certainly last through the end of 22 and most likely into 2023 as well. All right, good stuff. I appreciate you coming on and talking to us about the housing market here Al otero portfolio manager of armada ETF advisers looking at mortgage rates north of 6% and it's really, really headwinds for the real estate market after that surge during the pandemic. Right now let's head down to Washington D.C. world
Bloomberg Radio New York
"armada etf" Discussed on Bloomberg Radio New York
"You very much with the Bloomberg business flash out of San Francisco. Now, as we've been focused on today, more high well, high is an understatement. More massive inflation prints with the PPI coming out at 11.3. Yesterday we had the CPI out at 9.1. Let's talk with someone who can maybe offer you a solution in terms of the right hedge. David auerbach joins us right now managing director from armada ETF advisers and the cool thing is David with you and my co anchor pretty good. I can say, it's great to have you all here. Yeah. Definitely is. David got his BA at Texas. Did he? And his MBA at SMU. Well, the only reason he's telling me that is because for your information, David and for our entire audience, is my brother actually went to SMU. I grew up near SME. I'm a Dallas Dallas gal. I spent a few years hitting the bars around SMU. That's the same thing as getting my favorite places highland park, one of my favorite places to hang out. Let's get back to, well, actually it's really a real estate and partly residential story that you have for us, David, right? Because you think this is a great way to hedge against inflation. Absolutely. And thanks so much for having me. Really appreciate it and love the Dallas ties that's so cool. We take a very unique approach at armada. When we launched the home appreciation U.S. 3D TF in March, we had this view that we're building our fund on two fund principles. Number one, where people relocating across the country and then which of the residential REIT segments are benefiting from that relocation. From where we sit, we know that real estate is personal. If there's one thing that the three of us all have in common is that we're very fortunate enough to go to sleep with a roof over our head. Whether we lived in an apartment, we rent a house where we live is home. And that home is the most important investment decision that you make every single day. And as you mentioned about inflation, well, we know that interest rates are going up 75 basis points lock it in for sure, most likely a hundred at this rate, but what that means is that cost of that mortgage now gets more expensive. You have to come more to the table with the down payment. And so that's going to affect many first time home buyers and those that are probably in the market right now trying to buy that house. And for so many people, it's just been impossible, right? I mean, not only were they priced out of the market when mortgage rates were cheap. Now they have no chance of getting in. I know a lot of people just anecdotally who can't buy a house and I know people who can't sell a house because the buyers just can't afford it now, is that going to change? You know, I would say in the back half of the year, we would see some moderation, but frankly, I also think part of the place into that whole number one rule of real estate location location location. If you go talk to folks that are in Nashville or Charlotte or in Austin, they may have a different perspective right now, my neighbor across the street sold his house within a week here in Dallas and almost got full offer on his property. And so I think there are pockets that you're still seeing massive, massive strength, but the bigger problem here is that we all know there is a massive supply demand in balance in the housing markets. There's just not enough housing inventory to satisfy the amount of demand that's out there. David, is that going to change? I want to bring up another Texan that we're going to have on a little bit later on the show. Danielle dimartino booth. Whom you may know, she advised the fed and wrote a book called fed up. She advised the Dallas fed. She has said it's possible that we have a glut next year of housing and cars because so many people are trying to fill this void. What do you think about that possibility? You know, I don't know about that glutton necessarily. Again, the part of the problem is that air quitting is that affordable housing product that starter house doesn't exist anymore for those first time home buyers. But instead, you're seeing this plethora of single-family rental platforms from like invitation homes, American homes for rent. There is a tricon. There's a lot of single-family rental properties that are out there. One other point, employment growth is driving household formation. We know that the employment market is still strong with a three handle on the unemployment rate as a result, again, with inflation going up, gas prices are up and if you're an apartment landlord, you're still knocking on your tenants door on the first of the month saying, where's my rent? Many of these apartment companies as an example are reporting double digit year over year NOI growth rental growth, strong quarterly sequential growth. We're going into the summer prime leasing season for these apartment guys that are 97, 98, 99% occupied. And so again, it plays back into that thesis of where you live is that most important investment decision that you make for yourself for your family and for your kids. David, we got about a minute here. This is a trend that's not going away anytime soon. Do you foresee any sort of pop of the housing bubble anytime in our near future? If there is going to be, I think, a lot that's going to be dictated on future increases of the interest rates. We know obviously this next one is there going to be more down the road this year because that will play into the home price appreciation and the moderation of the housing market going forward. But again, with us focused on house, our ETF here, we're just trying to take it on a quarter by quarter basis, taking the news that's coming at us from the government Fannie Mae Redfin, Zillow, Bloomberg, all the sources that are kind of telling us where the housing market is headed. And right now, I will tell you from where we sit, we really don't see that letting up until maybe like I said back half of this year maybe into next year. All right, David, thanks so much for joining us, great having you all on this morning. David auerbach managing director at armada ETF advisers talking to us about possible inflation hedges. He would suggest one, which is their home appreciation, U.S. REIT, the ticker is house. Spelled in German, HA U.S. and you can