Thanks for the reply, I don't necessarily disagree but maybe a little more analysis is in order?
REITs a good counter-trend holding or are they in for a multi-year bear market as i rates head up? So far, so bad with the i rate correlation.
Haven't you noticed that gold has been very strongly negatively correlated with i rates?
Bond bubble bursts -- gold tumbles. We need inflation for gold, not higher real interest rates.
Yep, and even though many blamed naked shorting for collapse of Bear Stearns and others, I have seen absolutely nothing suggesting that it will be prosecuted or reigned in.
Going to be a huge problem (again) in a bear market.
Personally I can only get those kind of low rates if I have over $500,000 in margin (Fidelity). Though the arbitrage benefits of margin are obvious at those levels I still won't touch it - or crack or meth. Buffet said he would have been wiped out 3X if he had been on margin.
I'm just not that good in the long run.
NAV at September 30, 2013 was 18.63. Price as of November 6, 2013 (when update was supplied from Cohen and Steers) is $16.28.
Discount is a substantial 12.6%. Primarily on this basis I continue to hold my RNP.
Negatives are the 1.63% annual expense ratio and the impending rise in interest rates which will likely pressure the securities making on the holdings of RNP. It should be noted that despite the name "preferred" there are not very many assets actually in preferred shares. Mainly this is just a REIT fund with a smattering of preferreds and bonds.
Yes, good for you. The timing was text book, but even so, not easy to pull the trigger, not easy at all.
I remember the bottom vividly - March 2009, and three very significant trading days.
Very nice -- tomorrow will be another big day. Not big up, but big on whether we can hold this level. I am thinking we can.
Truly an excellent discussion with great points all around. This board is showing more promise as a thought sharing forum.
RAS is a mixed performer on inflation. We already saw how it reacted to fast rising rates - not good. But it is not a bond or preferred stock and its real estate should do fine as long as real rates don't rise fast. Real rates could be a killer.