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Strategies & Market Trends : Bear!

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To: Worswick who wrote (56)5/4/1998 1:36:00 PM
From: Terrapin  Read Replies (2) of 271
 
Worswick,

I share your concerns about REITs as a relative safe haven. It just seems like too much of a "sure thing" when you can invest in a REIT at a good dividend and also stand a chance of appreciation of capital when you buy at or below the value of assets. I ask myself what the catch is and it must be in what the REIT invests. Say I buy a REIT that handles home mortgages - then the big bear comes. It seems that so many people are invested so heavily in the market that they may lose the ability to pay off that mortgage and my REIT suffers (I won't even mention record levels of consumer debt).

I'm still learning about REITs so these concerns may not be valid. I guess I'm just trying out the bear argument on everything I can find! I look forward to Jim's response to your question.

Bear with me, <g>
John
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