REITs, or real estate investment trusts, can be a confusing asset to some investors.
But during the period from about 1995 onward, REITs have blown away the stock market. As you can see in the chart below, the FTSE NAREIT Composite Index has absolutely crushed the S&P 500 Index since the turn of the century:
And that’s in addition to having great yields.
In his Wednesday article for Sovereign Investor Daily, Ted Bauman explained: “The simple fact is that space on this planet is limited. If you can get your hands on the right space (or spaces), you can enjoy returns that beat almost any other asset class.”
In today’s 10-minute video, Brian Christopher and Ted discuss why buying REITs is a great alternative to owning stocks right now.
- REITs are specialized companies that invest in real estate of all kinds. They trade just like stocks. Quote: “As long as you know how to evaluate them, which is a little different from evaluating normal companies, they shouldn’t be scary at all.”
- Half of REITs have yields over 5%. In comparison, the S&P 500’s yield is less than 2%. Quote: “We’re getting the best of both worlds: We’re getting income, and we’re getting good stock appreciation as well.”
- With the Federal Reserve cutting interest rates, investors are looking for income opportunities. That’s going to push up the price of REITs even further. Quote: “The safety of a high-yielding REIT compared to, say, Treasurys or a bank account — it’s just a no-brainer.”
Watch the 10-minute video below to hear what Brian and Ted have to say about this one-of-a-kind investment.
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Assistant Managing Editor, Banyan Hill Publishing