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Why Every Investor Should Own REITs

If you don’t have REITs as a permanent asset class in your allocation, you should. And if you do own REITs, you should probably own more.

These are bold statements, but I’m here to back them up with facts. REITs are a fantastic asset class and are appropriate for every investor — from the youngest and most aggressive to those already decades into retirement.

REITs may not always be attractively priced, and there may be times when it makes sense to underweight them or to make a short-term tactical move to be out of them altogether. But these times are few and far between, and under normal conditions an allocation of 10%-20% in REITs is completely appropriate.

Today, we’re going to count the reasons why REITs belong in your portfolio.

#1 Diversification

Let’s start with one of the fundamental concepts of modern portfolio management: diversification. The alchemy of modern finance