12-11-2013, 02:21 PM
For me the optimal weightings are within a range of 10%-20%. Ten percent would represent a typical climate and 20% would represent a time of either steeply discounted valuations or a time when particularly favorable winds are blowing in favor of REITs. I think that much better entry levels are in the not too distant future, so will keep some cash to raise the allocation when the inevitable harsh market reaction comes.
To me there is a big distinction between property REITs and mortgage REITs. Property REIT most always have a place in the portfolio, but MREITs are only suitable when market conditions are very favorable for their origination activity, when spreads are large, and accumulation of portfolio assets is very profitable.
To me there is a big distinction between property REITs and mortgage REITs. Property REIT most always have a place in the portfolio, but MREITs are only suitable when market conditions are very favorable for their origination activity, when spreads are large, and accumulation of portfolio assets is very profitable.
Alex