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Post by chang on Oct 16, 2021 6:24:08 GMT
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Post by ignatz on Oct 16, 2021 10:10:45 GMT
I've owned VNQ and FRIFX at various times. Profitably, but not a lot of difference from the broader market. I haven't had more than market weight in RE since 2013. When you buy RE seems to more critical than broad market...considering volatility and boom/bust mentality....unless you think a repeat of 2008/2009 is a 1 in a hundred chance rather than 1 in 5, 10, or 15.
Even the sedate (?) FRIFX lost 30 percent in 2008 if I recall correctly.
I've seen guru contentions that the time to buy is when the trailing 12 month yield (excluding return of capital) is at least 300 basis points above the 10 year treasury. Using that "rule"....buy points are rare. For VNQ, the trailing 12 month yield is only 96 basis points above the 10 year treasury right now. Since 2014, the only buy points have been in spring 2020. As high as 372 basis points on 3/23/20. What's that worth? Probably not much. I didn't do the calc for any of the other funds you are considering. The standard bugaboo for inflation-fighting stuff is that they have little effect unless you devote a good chunk of total equity. 10 percent of equity isn't likely to move the needle appreciably, but who has the nerve for 40? Maybe you, but not me. |
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Post by uncleharley on Oct 16, 2021 12:32:20 GMT
I would add that one should be adept at trading when considering an inflation hedge. I am a believer in not fighting the fed and part of the feds job is to keep inflation at an acceptable level. Sometimes they are behind the curve [like now] and sometimes they are ahead of it. If you can read their minds, you can probably trade the curve. FWIW; My primary hedge against inflation is a larger house than I need on a larger lot than I can mow with a long term 2.5% mtg. Ask my heirs if it worked.
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Post by rhythmmethod on Oct 16, 2021 12:58:29 GMT
I’ve been using O for my RE exposure and am very happy with it. It yields 4+% and pays monthly. Like everything bot during the covid meltdown it has appreciated a lot. |
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Post by yogibearbull on Oct 16, 2021 13:07:25 GMT
ignatz , FRIFX is indeed sedate due to its real estate fixed-income component, but early-2020 turned out to be a Black Swan event for it with both stocks and bonds collapsing until the Fed stepped in (too early, so said many value guys who missed the whole show).
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Post by bb2 on Oct 16, 2021 19:48:52 GMT
I subscribe to a REIT newsletter from Brad Thomas on the Forbes platform of newsletters. I think it's about $200/yr. Not sure.
The letter has changed a bit in format; it's now in two parts, a letter, about 10-15 pages covering whatever Brad wants to talk about, like a particular REIT and which of his portfolios it's in and the "buy up to price" of each holding in the portfolio.
Part 2 is the supplement, which details all of his portfolios, (Sleep well at night, durable income, cash is king, etc, the holdings of each, sector allocations, the trades he's made during the month.)
His recommendations can jump around a bit, which has been a rare source of frustration for me but all in all, it's at least a good way to educate yourself about REIT investing. He can get into the weeds of the business and the numbers. His background is in retail property, so there's a bias to that sector in terms of coverage and I think a bit of love he has for the space.
I think you can get a free trial.
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