In your Asset Allocation, do you count REIT as Stock vs. Bonds ?

[audreyh1]

I would say things like REITs or precious metals deserve to be counted separately as an alternative class rather than stocks . The REITs correlation to stocks is about 66% depending on the category . That’s enough of a difference for me to warrant counting them separately. Of course utilities have like a 39% correlation to the broader markets and I still include them in my equity category so it’s really what you want as far as your own allocation.

If you have equity asset subclasses in your equity allocation such as small, medium, large, international, REIT and rebalance between them, you are taking advantage of those differing (and constantly changing) correlations.

We do same as youbet.

 

[eytonxav]

So if one has a separate category and is retired, would one say they are aggressive in their portfolio with 60% stocks and 20% REITS?
I would think yes.

Not in my case. I have a conservative port and my Alt category is only about 5% of the total port.