REITs have been rubbish lately – the Big Box is dying, and a lot of it is in shopping mall companies like Simon – but it might be the time of year that it pays its big annual distro and takes it out of the NAV, but you get more shares in the distro so it evens out on your balance sheet. Plus, with so much of REIT distro being unqual’d dividends, it’s liable to take a bigger hit than, say, VTSAX whose distro is almost all LTCG and QD.
REITs have been rubbish lately – the Big Box is dying, and a lot of it is in shopping mall companies like Simon – but it might be the time of year that it pays its big annual distro and takes it out of the NAV, but you get more shares in the distro so it evens out on your balance sheet. Plus, with so much of REIT distro being unqual’d dividends, it’s liable to take a bigger hit than, say, VTSAX whose distro is almost all LTCG and QD.
so you sold all yours and moved on to greener pastures?
Why did VGSLX get spanked today?
Due to rising real rates, i.e. a rate play. Not just Reit but look at 10y UST or TLT. IMHO, we are at the beginning of an inflationary spike that will drive rates up and kill bonds/reits. The biggest question I have is if this is the beginning of the bear market in bonds will equities rise (b/c no other place to put the $) or fall (as financially engineered fake companies/financial products implode due to a rate spike). If this persists, the pain train is just getting started. For full disclosure, I owned a 30y TIP yielding ~2.2% and sold about 60% the past 4-6 months. Still holding other 40% b/c if this happens, the powers that be will do everything to force a negative rate environment. Plus, this I inherited this TIP, so there is some sentimental value.
What did TLT do today?
What did REITS do today?
Although most on here don’t worry about the day to day (yeah right), TLT and REITs will likely bounce but this is just getting started IMHO (especially if China and Sushi has anything to say).
thevaluedoc today.
the near future, if/when those buying reits, bonds and most likely stocks realize that it was all one big bet on interest rates.
Never held a REIT fund. I’ll let the real estate portion of my overall portfolio be direct ownership of rental properties once I branch into that. …guess I’ll be my own REIT?
I’m curious why VNQ (Vanguard REIT Index Fund) is dropping so much lately? I’ve read that REITs are expected to do well under the new tax law, so why are we seeing the price of these index funds dropping so dramatically right now? Not going to change my investment strategy, I’m just trying to understand it’s behavior.
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