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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks

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To: Cogito Ergo Sum who wrote (1862)11/9/2001 1:55:18 PM
From: bill  Read Replies (2) of 11633
 
I asked a question some posts back about the "necessary"
relationship of yield to trust price. Got some response
but no clear answer. HOWEVER, ask and it shall be given.
In the FP todaythere was an article on REITs and at the
end it says "Louis Forbes, an analyst at ML,said he downgraded the REITs because they had become too expensive."
All of the REITs have fallen below the 20% total return ML demands for any buy recommendation, he notes."

So, there it is folks. The "necessary" relationship is
20%. Our buying and selling of REITs have to take into
account the upgrade and downgrade of the brokerage houses.
If, like Peter, we buy and hold, we can ignore the 20%
marker. However, if, like Peter, we also want to buy on
dips, the fall below 20% and the shift to a hold recommendation is a signal to start tracking a REIT
so as to add it to our portfolio.

I've watched a couple of brokerage house recommendations
for REITs and the buying and selling does seem directly
affected by the recommendations. It may well be that a
lot of REITs are held by investors/retirees who allow
their broker to trade their accounts.
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