X hits on this document

1323 views

0 shares

0 downloads

0 comments

145 / 367

THE STEADY STAPLES OF A WELL-BALANCED PORTFOLIO

131

One major advantage to REITs is that they offer some protection from inflation. Inflation has a negative effect on equities. As inflation increases, the buying power of our dollar decreases; thus, the buying power of the value of our equity accounts is also less. However, as prices rise, real estate prices also tend to rise. This inflation effect provides a benefit to the REIT investor because it is reflected in the REIT price, and possibly, the corresponding dividends.

Bonds, cash, and REITs may not be as exciting or glamorous as stocks or mutual funds, but they play an essential part in a smart investor’s portfolio. Without them, your portfolio may not be ade- quately diversified.

Document info
Document views1323
Page views1323
Page last viewedMon Jan 23 08:52:25 UTC 2017
Pages367
Paragraphs4568
Words116968

Comments