REITs

2 articles

Risk Management & Macroeconomics

Crisis-Proof Investments: What Defensive Sectors Saved in Four Crashes, and What They Cost

Consumer staples and healthcare fell less than the S&P 500 in all four bear markets since 1999, but a defensive basket trailed the market by 15 to 30 points in the year after each low and compounded at 7.75% a year against 8.68%. Holding a fixed defensive weight cost little; switching into defensives after a 20% fall cost about a fifth of the final sum.

16 min read
Investment Strategies & Instruments

Real Estate Investment Trusts (REITs)

A REIT owns income-producing property and must distribute most of its taxable income to shareholders, which is why yields are high and retained growth is low. It gives property exposure with the liquidity of a listed share, but it trades like an equity and is highly sensitive to interest rates.

16 min read