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REIT Train
Old 04-23-2009, 09:55 AM   #1
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REIT Train

Anybody out there jumpin' on the REIT TRAIN?

Long Term, of course.

Space Mountain
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Old 04-23-2009, 10:00 AM   #2
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I'd wait until the wreckage was at least partially cleared and the locomotive placed back on the track before I'd consider buying a ticket....
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Old 04-23-2009, 10:31 AM   #3
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I was on that train but luckily I got off when the housing boom went to bust . I still have a few seats but not a lot .
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Old 04-23-2009, 10:35 AM   #4
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I do have abour 5% of my AA in REITs right now. I've historically targeted 7-8% but I don't really want to jump in and buy more yet. There's too much still going wrong in housing and commercial real estate and (increasingly) malls and shopping centers.

It's one I may look to overweight when I think the bulk of the damage is done, but not yet. Don't forget that REITs tend to make money with leverage, which has been really toxic in the last year and continues to be, at least to some degree.

I did really well with REITs from 2000 to 2006. Each time I rebalanced I sold some and now I'm just riding it down.
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Old 04-23-2009, 10:38 AM   #5
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Quote:
Originally Posted by Moemg View Post
I was on that train but luckily I got off when the housing boom went to bust . I still have a few seats but not a lot .
Switched all to Target 2015 jan 2006 - selling my Vanguard REIT Index among others - EXCEPT:

In a lonely corner of my one remaining DRIP file cabinet - the Norwegian widow has UDR and WRE left.

My lips are sealed - keep it quiet.

heh heh heh -
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Old 04-23-2009, 10:49 AM   #6
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They say buy "when blood is in the street". Well, I think the victim is
is still bleeding and likely to hemorage even more as comercial credit
defaults unwind. Keep your powder dry for a little longer.

Cheers,

charlie
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Old 04-23-2009, 10:55 AM   #7
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Originally Posted by Space Mountain View Post
Anybody out there jumpin' on the REIT TRAIN?

Long Term, of course.

Space Mountain
Yes, I switched up my permanent asset allocation by including a 5% US REIT component and a 5% international REIT component. When I originally set up my asset allocation a few years ago REITs seemed wildly overpriced, so I took a pass on REITs at the time. I got in at prices about 10-15% less than today's back in the Nov 2008 "bottom".

I recently took a peak at correlation coefficients (r^2) between asset classes in my portfolio based on quarterly and annual performance results. REITs were one of the few equity asset classes that experienced low levels of correlation with virtually all other equity asset classes (except small value which is ~30% REITs anyway). R^2 of around .5 vs. most other equity asset classes on quarterly numbers for last 10 years.
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Old 04-23-2009, 12:59 PM   #8
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I'm still buying REIT through my 403b, just trying to keep allocations in the right range. I'm not market timing, but REITs and International are where my retirement fund allocation percentages are too low so that is where I put the new money. Hopefully 5 years from now it will look like a good move.
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Old 04-23-2009, 05:34 PM   #9
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Still buying VGSIX in my 457.
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Old 04-23-2009, 06:47 PM   #10
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I have been buying a lot of VGSIX in the $7.50-$10 range. My cost basis is now around $13 a share (It was about $23/share at the peak of the market). I'm in it for the long haul and consider it an income play so, as long as the dividend holds pretty steady, I'm good to go.
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Old 04-23-2009, 07:07 PM   #11
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Still holding a very small stake in a Roth. I can't put any more in after FIRE, or I certainly would.
No plan to abandon the position. No plan to buy any in a new taxable account.
Just letting those 12% YTD dividends keep coming and coming...
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Old 04-24-2009, 12:00 AM   #12
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Sticking with VGSIX. It dropped so far I may as well. The yield was pretty good last time I looked, though.
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Old 04-25-2009, 08:46 AM   #13
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We're planning to get on board this summer, as part of our diversification plan, and will DCA in to about 5% of our portfolio. This is definitely long-term stuff for us, so I don't mind if it drops a bit more while we're still buying in, it's still good timing relative to a few years ago.
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Old 04-25-2009, 01:55 PM   #14
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I'm about 2% with VGSIX in my Roth.
What a bargain!
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Old 04-30-2009, 09:42 AM   #15
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A positive, but imho, badly thought out, article in the NY times

A Commercial Real Estate Crisis? Probably Not - Economix Blog - NYTimes.com

I dont' normally comment on articles, but just had to on this one!

"This article assumes that commercial real-estate was on a sustainable trend prior to 2000. Where is the proof of that?
Unlike the occupants of housing, the occupants of large chunks of commercial real estate (the manufacturing sector, service sectors like call-centers) have moved offshore. With the credit crunch, the retail space requirements may be well below the pre-2000 trend.
While I hope the author’s prediction is correct, this article provide a rigorous supporting argument."
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Old 04-30-2009, 02:42 PM   #16
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Quote:
Originally Posted by walkinwood View Post
A positive, but imho, badly thought out, article in the NY times

A Commercial Real Estate Crisis? Probably Not - Economix Blog - NYTimes.com
....

"This article assumes that commercial real-estate was on a sustainable trend prior to 2000. Where is the proof of that?
....
Yeah, poorly thought out, the title refers to commercial real estate but body of the article to “non-residential building.”

define:Commercial Real Estate - Google Search

Here’s one definition of “commercial real estate” from Google definitions: “the business of selling or buying properties such as office complexes, industrial plants, apartment complexes, and retail properties”

This is interesting to me as the only commercial REIT-style offering I tried to study included both apt. bldgs and office buildings in seven states including NYC....
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Old 05-02-2009, 07:35 AM   #17
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Well, Like Ziggy.. But I'd been in them for yrs prior .. Mostly in the early yrs in Vanguards VGSIX and a few others with Less $.. Then I Went Into the Light..LOL and moved most into CGMRX. with a Strategy from someone that had done very well with it.. Basically the EOY system.. and Approaching Reits Just like Stocks/Equities.. They are not Bonds IMO..And need /require Constant reseraching and Monitoring.. and Of course Rebalancing and Having A few resources to Follow their lead..

But the First Riet to own? = Paying Off Your Home..vs loading up a Roth Account..( Get a 15 yr Mort ) and then you can go play with Extra $ burning a Hole in your pocket..LOL

And Notice.. Alot of, if not all of the Pro's Portfolio's have Added Reits in the past 3-5 yrs, where as prior it was not considered a Primary Category to invest in..And as usual, most of them were just a few yrs late to the Train.. hardly no-one rec'd Reits prior to the Bear of 00'..

Buying Opportunities? It's really about the same as Looking around in your Town's Commerical District.. Ck the Prices on Comm. Buildings, etc.. Ask a Com. RE agent how the prices have Fared..Get The Prospectous on the Fund and look up it's holdings, then look up those co.'s of what they own..and where they are located..( You want To own Com. Property in NYC, Boston, SF, Chgo. or In Buffalo Breath Mont., New Orleans or Detroit? )

Then Finding a Reit fund that sticks to and finds the Best RE Stocks that own the Better Comm. Buildings and Malls, etc.. in the Right States..( an Alternative Fund? WMRIX/WMMRX is a Balanced Fund.. but plays heavy in Reits..just ck it's RE Stocks )

And you can go keep out say 20% of the $ you want to Put into Your Reit fund and use that to ? > Buy Some of it's top 5-10 stocks and buy them On Margin..giving you +50% more buying power and can boost your Investment by +25% over-all..

I reduced my CGMRX by 75% in Jan. 08'' only because? Following this Guys EOY system and a +80% yr--ie: took Profits, ( He and I did the same in 01, 03',05.... )

And Been Accum. It again Since March.... DCA ing in 25% Increaments..on the dips..

And I don't advocate starting out with more than (a) It's Min. req'd to Open or (b) not more than 5% of your Savings..for the 1st yr or so..and If you want to devote the Time( Ave 1 hr a week) ? to be a Amature Specialist so-to-speak... and after say 1-2 yrs or paying your dues going to school.? Then Start playing it..also ck out using a 200 day and 150 day moving ave. system.. and just to "help Increase your odds" from 20-1 against you to maybe 5-1...LOL

They say B&H is dead? maybe, but I prefer to Say be more of a Buy and Monitor and play it more like a stock vs a Bond.., otherwise? Just own GNMA's.. And I hear thru the Grapevine? The Fed is Trying to "Influence" some Reit Fund Mgrs. to buy certain stocks of RE and Home Builders and others ... I wouldn't put it past them...

FYI? Reits are still #1 for the past 10 & 9 yrs.. ( starting with VGSIX )...
From yrs 00-07'..Having an Accum value of about $33,000 per $10k Cost basis.. and a $20,000 Value after past 10 yrs..of the other 4 indexes I track? Only The Mid Caps come in a distant 2nd at about $15k past 10 yrs value..

and of course, Past Performance May not Guarantee the Future, but It sure can Help Improve your odds.... and M* has a New feature ( Chart Beta) that you can go back more than 10 yrs now too ...for the really LT types..
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Old 05-03-2009, 07:01 AM   #18
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I'm a REIT buyer this year.
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