REITs Buffeted By August Turmoil

The following is the opening paragraph of an article on GlobeStreet.com which carried the above headline.  The article points out just one example of what investors endure when they diversify their portfolios by investing in REIT’s instead of in private-equity real estate.  REIT’s have some advantages, but one of their disadvantages is that they are subject to stock market volatility.  Ask yourself if this what you want in a real estate investment:

“WASHINGTON, DC – REITs experienced their fair share of turmoil last month thanks to the unusual macroeconomic and political events. The end result, according to NAREIT figures just posted on the association’s website: the FTSE NAREIT All REIT Total Returns Index fell 5.06% for the month. They still managed to slightly outperform the broader markets, as the S&P 500 was down 5.43% and the Russell 2000 Total Return Index down 8.7%. NAREIT did not return a call from GlobeSt.com in time for publication…”

 

Think about it.

Dave Hogg

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