When Do I Buy REITS? Written By: David Neubert 2008-02-14 15:57:31 A reader asks: "You said you were watching REITS a few months ago and would pull the trigger if they fell. Can we buy them yet?"
My answer: Not yet. I use the Dow Jones Wilshire REIT Exchange Traded Fund, (RWR - $66.32) to follow the REIT market. Right now the fund has fallen 34% from it's high of nearly $100 to $66. While that's a big fall at a trailing yield of only 4.3%, I'm still not ready to jump in. Big cap U.S. equities still seem like a better deal.
Disclosure: I do not own RWR. I do own some commercial real estate though, in the form of a few different limited partnerships.
