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URL:  http://boards.fool.com/jack-what-do-you-mean-reits-have-had-a-good-run-18726798.aspx

Subject:  Re: Wellesley Income Fund Date:  3/12/2003  8:32 AM
Author:  drnonlinear Number:  35891 of 76237

Jack,

What do you mean REITs have had a good run? Take a look at this chart:

http://quote.fool.com/Chart/chart.asp?osymb=&osymbols=vgsix&symbols=vgsix&currticker=VGSIX&time=5yr&uf=0&compidx=aaaaa%7E0&ma=0&symb=vgsix&freq=1dy&lf=1&comp=&type=128&sid=16908

I think you are confusing record single-family home prices for REIT performance. REITs have had a decent setback of late and I believe are ready to be attractive buys.

Off the top of my head, I'd do this:
Final allocation:
VGSIX 20%
Health sci 10%
Capital opp 10%
Wellington 40%

I'd build up these positions, dollar-cost averaging over 6 months. Keep the final 20% in short-term corporates (I believe Vanguard has a fund for that).

HTH,
-dr.nonlinear-

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