REITs

  • 25 May
    Building The Best Portfolio For The Upcoming Recession

    Building The Best Portfolio For The Upcoming Recession

    • Stocks will be hit badly. Low price earnings and high book values can provide some safety.
    • Bonds look much better than last year.
    • Alternative investments can be a jack-pot for your portfolio.

    Introduction

    Yesterday we discussed how a recession is imminent, especially if the trending down credit growth turns negative.

    The most important thing now for investors is to prepare for such an event. Today, we’re going to dig deeper into the recession-related investing risks as different asset classes will be affected differently. More →

  • 22 Mar
    Here’s What You Need To Know If You’re Counting On Dividend Income

    Here’s What You Need To Know If You’re Counting On Dividend Income

    • I’ll analyze the dividend environment by describing the risk reward scenario for dividend income investors.
    • The ‘monthly dividend company’ will still remain so, but you’ll be able to buy it at a 30% off, or even cheaper.
    • Whatever you’re doing, just don’t chase yields as that is the fastest way to lose a lot of money in this market.

    Introduction

    What dividend investors don’t like is uncertainty, especially uncertainty related to their dividend income. Nevertheless, uncertainty is exactly the feeling many investors have in this environment, not because of the market as the indexes are constantly breaking records, but because there is a certain feeling in the air that things might soon change and nobody knows how the financial world will look afterward. More →

  • 28 Dec
    2017 Looks Like Another Excellent Trading Year

    2017 Looks Like Another Excellent Trading Year

    • Rebalancing your portfolio between sectors and markets should lower your risks and increase your returns in 2017.
    • 2016 is an excellent example of how such a strategy works when the general stock market is overvalued.
    • Things like avoiding REITs in August 2016 or entering metals will be easy to spot and act upon, even in 2017.

    Approaching The Current Market Risk Reward Puzzle

    A recent Wall Street Journal article raised the question of whether investors looking to get into the market now are too late for the Dow 20,000 party. Many investors watched the 7-year stock bull market from the side-lines after they got burned during the latest financial crisis and didn’t overcome their anxiety and invest again. The article suggested that investing now is a good thing to do if you are a long-term investor. More →

  • 31 Oct
    REITs – Still A No Go As Risks Are Rising

    REITs – Still A No Go As Risks Are Rising

    • With yields going up, REITs have fallen 10% since the beginning of August.
    • With Italy issuing a 50-year bond at a 2.85% yield, we question the intelligence of the investors who bought them.
    • With REITs you are risking a 50% decline in the next few years for a 3.5% yield.

    What’s Going On With REITs?

    On August 3, 2016, we discussed Real Estate Investment Trusts (REITs) and how they weren’t a great investment at the time. You can read the article that introduces you to what REITs are and their risk and rewards here.

    Since the beginning of August, REITs have fallen by 10% (iShares U.S. real estate ETF – IYR) compared to the S&P 500 which was practically flat. More →

  • 03 Aug
    Investing In REITs Is Great, But Not Right Now

    Investing In REITs Is Great, But Not Right Now

    • On one hand, REITs offer higher dividend yields, inflation protection, real estate diversification.
    • On the other, REITs are highly leveraged and consequently have more downside when economic circumstances turn.
    • Don’t get tempted by the higher dividend yields of the general REIT market now, security selection is the only option for profitable longer term REIT investments.

    Introduction

    As we promised in our farmland article, today we are going to talk about Real Estate Investment Trusts (REITs). We are going to discuss what REITs are, what benefits they offer, what risks there are with them and what the current market perception for them is, whether overvalued or undervalued. More →

    By Sven Carlin Investiv Daily REITs