The More It Drops, The More I Buy - Revisited
Mar. 6, 2019 9:00 AM ETAMZN, BDC...174 Comments115 Likes
Once again, REITs recovered the majority of their losses after a painful end of the year 2018.
Historical data suggest that REITs will keep outperformance even in times of increasing interest rates.
Fundamentals are strong today with REITs enjoying solid NOI growth and historically strong balance sheets.
We share 3 Top Holdings of our “Core Portfolio" at High Yield Landlord.
This idea was discussed in more depth with members of my private investing community, High Yield Landlord.
Would I do it (buy down) again? No. Does it work every time? No. Full stock market recovery from the ‘29-‘33 debacle took many years (plus a world war). Japan’s market still isn’t back to where it was in the late 90s. Buying down shouldn’t be confused with rebalancing. As long as there’s a methodology behind it (ie twice yearly) rebalancing is a good idea. Does tend to make you sell high and buy low.
This post was edited for brevity.