One of the major lessons in 2019 is that the appetite of REIT investors is insatiable. REITs have increased in prices so much that folks are understandably getting worried that a bubble might be forming in the markets.
One qualitative reasoning is that older investors, whose appetite for passive is so great in the face of an extended period of low yields, have rushed into this asset class. As it takes time to collect dividends, it is much harder to convince a REIT investor to sell some of his holding that generate passive income for him.
In the Early Retirement Masterclass, we employ an empirical approach of quantitative back-testing to support or debunk common REIT strategies in the investment world.
In this article, I will review three common retail investor strategies that are benchmarked against the baseline strategy of buying and holding a basket of all REITs counters.