Skip to main content
No. of Recommendations: 1
My post to the thread "what have you bought lately?" gives you a sense of how I'm trying to achieve a trading strategy.
(post 12852)

After buying REITs at their height in 1997 and convincing myself that the premiums were justified, I was very discouraged to see them head for reality. I don't want the same thing to happen this time. This time I am going to sell off a portion, maybe up to 50%, in spite of being a yield hog and in spite of my ability to convince myself that REITs will stay overpriced. When prices drop, I'll buy again.

Look at how it works with preferreds:
at $25 with a $2 dividend, the yield is 8%
at $20 with a $2 dividend, the yield is 10%

When interest rates go up, they will get killed. I'm pulling some money out now so that I can buy $20 preferreds.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.