REITS

[djAdvocate]

going forward, this sector looks really good to me.

if you don't know the REIT market, then the ETF SRET is maybe your best bet ($9.54)

the other two I like are RWT ($10.36) and OXSQ ($4.56)

I expect these to all rise 50% this year, and pay handsome dividends on top of that.

if you prefer the debt market, MAIN looks good at $39+

[bean29]

What do you think about BIT Coin.  I have never been able to bring myself to invest in it.  I think it is too speculative.  But if the JP Morgan Chase ETF comes to pass, I am thinking about investing in that.

I saw that one should look to industrial REIT's right now.

[djAdvocate]

Mar 29, 2021 10:50:55 GMT -5 bean29 said:

What do you think about BIT Coin.  I have never been able to bring myself to invest in it.  I think it is too speculative.  But if the JP Morgan Chase ETF comes to pass, I am thinking about investing in that.

I saw that one should look to industrial REIT's right now.

I like it.

but I would get the trust, GBTC.

it is currently selling for $50 right now.

[Artemis Windsong]

Thanks for the tip on SRET.

I am bad about research.

[djAdvocate]

Mar 30, 2021 21:44:54 GMT -5 Artemis Windsong said:

Thanks for the tip on SRET.

I am bad about research.

sometimes it is easier to float downstream to get where you are going.

I invest in individual issues when I KNOW that they will outperform the sector. otherwise, that strategy makes no sense, and ETFs are the way to go.

[buystoys]

I know nothing about REITs.  Could someone explain them to me in layman's terms?  I've kept our portfolio invested in S&P 500 or Total Market index funds.  It's been very, very good for us to date, but if there's something I can do to get better returns, I'd like to at least know a bit about it.

Thanks!

[Artemis Windsong]

I did buy 200 shares in my IRA. Divi reinvest.

[djAdvocate]

Apr 1, 2021 10:57:44 GMT -5 buystoys said:

I know nothing about REITs.  Could someone explain them to me in layman's terms?  I've kept our portfolio invested in S&P 500 or Total Market index funds.  It's been very, very good for us to date, but if there's something I can do to get better returns, I'd like to at least know a bit about it.

Thanks!

it is a publicly held company that invests in real estate.

the requirements of said companies are that they pay out 90% of their earnings in dividends.  there are certain rules about holding these stocks that you should check with your accountant, particularly if you are a foreign national.  but if you reinvest the dividends, I think you are exempt.

I reinvest the dividends.

when the collapse happened last year, most of these stocks lost 80% of their value.  which is dumb, if you think about it.  the basic value of an REIT is the real estate, and that only dipped about 10%.  the tenancy was also impacted, but at worst by 30%.  SRET went from $16 to $4.  RWT went from $18 to $2.  so, at the bottom, these stocks were selling at a 50-80% discount.  RWT is currently just over 10, and SRET is just under 10. 

the great thing about what happened is that most REIT's cleaned up their portfolio (wrote off a ton of bad holdings, etc).  so they are in profoundly better shape than they were a year ago.  dividends in the sector are rising about 15% per year right now (vs the average of about 5% prior to 2020).  and the yields are way above nominal, as well.

in short, there is a lot of room to grow here.

if you want to think of this in real estate terms, just think of what you would expect for ROI on an apartment, multiply by 0.9, and that is the dividend you can expect to get from an REIT.  I think of REIT's as "real estate for the little guy, and without any of the liquidity headaches".

[buystoys]

Thank you djAdvocate. 

[resolution]

Vanguard has a REIT index (VGSLX) that I used to introduce my husband to investing when we first got married. He didn't trust the stock market but he was willing to give it a try with something that had real estate as an underlying investment. I eventually segued him into total market (VTSAX) but we kept the original investment in the REIT. 

The REIT hasn't done quite as well as our total market funds, but it's been decent and it served its purpose. 9% on the REIT as opposed to 14% on the total market since we married about 10 years ago.

[bean29]

I want to do some taxable investing.  Is this a good candidate for that? or am I better off adding it to an IRA or 401K?

[djAdvocate]

Apr 2, 2021 7:16:17 GMT -5 resolution said:

Vanguard has a REIT index (VGSLX) that I used to introduce my husband to investing when we first got married. He didn't trust the stock market but he was willing to give it a try with something that had real estate as an underlying investment. I eventually segued him into total market (VTSAX) but we kept the original investment in the REIT. 

The REIT hasn't done quite as well as our total market funds, but it's been decent and it served its purpose. 9% on the REIT as opposed to 14% on the total market since we married about 10 years ago.

i agree with this overall assessment.

as a CLASS of investments, REITs tend to UNDERPERFORM. I don't generally recommend them.

this is a "special circumstance". I recommend buying this sector and holding for 8-12 months.

[Rukh O'Rorke]

ok - being adventurous this morning - and avoiding my "work" responsibilities a little longer, I put a small amount into each of these plus dsl.

I now have no more money to invest! well - I'm already dipping into my "home improvement fund" but will see how it works. 

These were limit orders, so have not executed yet. I typically put in limit orders that are a small percentage off current price...will see what happens....

I'll update my divvy portfolio later this week - if in fact any of these go through....

[djAdvocate]

I think that the REITS will significantly outperform the market through 12/31.

my reasoning is that the Federal Money Machine can only print so much before it overcooks the economy. now, that has not happened so far, but consider the backdrop. we had the worst recession since WW2 in 2009. after cutting the deficit in half in GDP terms, we are now off to the races again under Trump/Biden. this is the worse deficit spending we have seen since the depression, and it HAS to bite us.

WHEN interest rates go up, people will move out of the market into safer investments. the OP represents a VERY safe portfolio.

disclaimer: the stoking of the economy might turn this into a raging bull market as well, but ONLY if inflation is kept in check.

[Rukh O'Rorke]

Apr 15, 2021 0:47:08 GMT -5 djAdvocate said:

I think that the REITS will significantly outperform the market through 12/31.

my reasoning is that the Federal Money Machine can only print so much before it overcooks the economy. now, that has not happened so far, but consider the backdrop. we had the worst recession since WW2 in 2009. after cutting the deficit in half in GDP terms, we are now off to the races again under Trump/Biden. this is the worse deficit spending we have seen since the depression, and it HAS to bite us.

WHEN interest rates go up, people will move out of the market into safer investments. the OP represents a VERY safe portfolio.

disclaimer: the stoking of the economy might turn this into a raging bull market as well, but ONLY if inflation is kept in check.

i think history is repeating itself. A ravaging pandemic in the late teens, the roaring 20's, stock market record afer record, and then a huge crash and decade or more or hardship.

But i'm not sure how to hedge against the downside. I've put all money I don't expect to spend this year into the market. I'll start rethinking in a year or two. Try to shore things up.

[djAdvocate]

the market is BEHAVING as if it is heading for a "reset".
the hot stocks last year are almost all down, with a few exceptions.
so, I am looking for stuff that was never really in favor last year.
particularly conservative investments.

I like that 5% dividend portfolio quite a bit.

[Rukh O'Rorke]

Apr 16, 2021 19:49:11 GMT -5 djAdvocate said:

the market is BEHAVING as if it is heading for a "reset".
the hot stocks last year are almost all down, with a few exceptions.
so, I am looking for stuff that was never really in favor last year.
particularly conservative investments.

I like that 5% dividend portfolio quite a bit.

Thanks