The Ignorant Investor
Ignorance Can't Stand in the Way of My OpinionThursday, March 31, 2011
REITs keep going up
I don't understand the market's love for REITs. According to what I'm seeing regarding Vanguard's REIT fund, earning's growth is down and the fund trades at 86+ times earnings. Price to book is 2.3X, which is not extreme, but is still high. Yield is just a little over 3%. The upside has to be limited unless earnings growth is accelerated, but there's probably something going on in this market that I don't understand. Vanguard's broad-based REIT is almost back to its pre-recession levels.
This is the trouble with being an amateur forced to play in a world of professionals. I have to play the investment game to grow a retirement plan, but the markets always end up acting in mysterious ways.
This is the trouble with being an amateur forced to play in a world of professionals. I have to play the investment game to grow a retirement plan, but the markets always end up acting in mysterious ways.
posted by Worker 17 # 4:34 PM 
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