Richard Kang1

Beware New Real Estate Investment Products

Slavo

Thanks for your critique. I’ve been writing for Seeking Alpha for nearly 4 months now and there’s nothing that will improve me more than constructive criticism. Whether your criticisms are truly constructive, I’m not so sure.

You’re right that my argument is less than perfect. In my view, what I provide is less of an argument and more an observation on the behavior of both investors and the industry that provides investment vehicles to them. Nevertheless, I could have made it clearer that possible bubbles in product development are somewhat analogous to bubbles in asset prices (for a particular asset class or strategy).

I did a google search on you and see you're also in the industry. Feel free to email me at my office, [e-mail] to discuss further privately.

Best

Two Concerns With the New ETFs Hitting the Market

Thanks JonD and Andrew for comments. Would have loved to had the choice to use DFA ETFs 3 years ago at the bottom of the market. I only wonder if it's too late for them to get in now . Consider GLD vs IAU. "First to market" matters in this space as much as in information technology.

JonD: Interesting input on timber. As much as I like the idea of passive instruments, I'm not an absolute fanatic about it. Thus, perhaps this is an area (and infrastructure as well) where it pays to put down some $$$ to get an active manager who specializes in that area (like Hancock for timber and Macquarie for infrastructure).

Lastly, back to Andy. The iPath ETNs and a significant concern for retail investors: Any word on negative tax consequences on these versus ETFs? I hear "notes" and I think "taxed as income". I need to find some documentation that explains the difference in the underlying structure of ETNs versus ETFs. I saw someone from BGI talking about these on CNBC but didn't provide much other than that they provided exposure to certain markets (I think he was pushing commodities ... big surprise).