Robert Nabloid

5 Investments to Increase Wealth, Not Just Preserve It

"Real Estate: Pricing remains completely irrational for real estate investment trusts (REITs). Some closed-end funds are off as much as 90%. Dirt is cheap - but it isn’t that cheap. This is a once-in-a-lifetime rebound opportunity. If nothing else, capitalize on the unstoppable trend of homeowners converting into renters by considering an apartment, like Equity Residential Properties (EQR)."

I think there are legitimate reasons for REITs being so cheap.
1) There is a coming crisis in the commercial real estate market - many stores are closing and there are no replacements. People realize that there will be increased vancancies.
2) Some people expect interest rates to eventually rise very high. Right now they are going down and the Fed is printing money. But once the Fed has printed its way out of deflation and inflation starts to trickle into the equation - interest rates will soar. If that scenario doesn't occur - another might. IE, the USD could fall in value relative to other currencies and be required to raise interest rates to save itself. Either way, REITs are debt ridden and a rising interest rate could spell disaster.