This has been puzzling me for a long time.
Burton Malkiel, in his "Random Walk" book, recommends Real Estate (a REIT fund) as an integral part of a portfolio along with stocks, bonds, and cash. He contends that REITs aren't highly correlated with stocks/bonds, and therefore add some protection against volatility along with income.
Nonetheless, I rarely come across anyone else who makes such a recommendation. It's almost always "x% stock and y% bonds." I've found a handful of discussions here on the topic in which those who comment are not particularly enthusiastic about REITs; and I don't see wholehearted support for holding them.
Having followed Malkiel's advice for a long time, and now facing retirement myself, I am wondering whether I should simply give up on the whole REIT idea. I'm having difficulty seeing REITs (or VGSLX, in particular) really holding up to the promise of decent income generation, and wonder whether I should maybe grab some bonds (or some more bond fund shares) while interest rates are still attractive. On the other hand, I've read that with lowering interest rates, REITs can expect a boost.
Is there anyone out there who is enthusiastic about REITs? Any other "Malkielheads" who have had good or bad experiences following his advice? I'd love to hear from you. Thanks!
Burton Malkiel, in his "Random Walk" book, recommends Real Estate (a REIT fund) as an integral part of a portfolio along with stocks, bonds, and cash. He contends that REITs aren't highly correlated with stocks/bonds, and therefore add some protection against volatility along with income.
Nonetheless, I rarely come across anyone else who makes such a recommendation. It's almost always "x% stock and y% bonds." I've found a handful of discussions here on the topic in which those who comment are not particularly enthusiastic about REITs; and I don't see wholehearted support for holding them.
Having followed Malkiel's advice for a long time, and now facing retirement myself, I am wondering whether I should simply give up on the whole REIT idea. I'm having difficulty seeing REITs (or VGSLX, in particular) really holding up to the promise of decent income generation, and wonder whether I should maybe grab some bonds (or some more bond fund shares) while interest rates are still attractive. On the other hand, I've read that with lowering interest rates, REITs can expect a boost.
Is there anyone out there who is enthusiastic about REITs? Any other "Malkielheads" who have had good or bad experiences following his advice? I'd love to hear from you. Thanks!
Statistics: Posted by SerenityGarden — Sat Aug 17, 2024 8:11 am — Replies 2 — Views 79