Merrill and Bear Stearns both recommending REITs
**Condensed from Bloomberg Business News; article published at 1:54pm EST.
Merrill's Charles Clough and Bear Stearns' Elizabeth Mackay think REITs are coming back. Clough believes REIT stocks will look more attractive as the economy remains lethargic and bond yields decline.
Mackay believes that, with interest rates at historically low levels, economies are growing faster, and thus inflation will soon creep upward. Hard assets, such as real estate and precious metals, will become more attractive over financial assets, such as bonds and stocks.
However, Michael Price, head of Heine Securities and manager of $18 billion, believes that a REIT debacle is "on the horizon," and that the stocks out to slide. The article does not give his reasoning.
-----
What do you think of investing in REITs at this point in time? Which REITs are best: shopping mall, office space, apartments, or what else?
Philip |
