REITs in a Global Investment Portfolio

The speaker discusses the importance of having US based REITs as a means of diversification within your portfolio.  He illustrations suggest that global real estate has averaged a 14% return over the past 18 years, which is 4% higher than global stocks and 7% higher than global bonds.  He takes it one step further to suggest that North American real estate offers even higher returns, of nearly 16%. 

This presentation suggests that a risk averse investor should have 11% of their portfolio in real estate.  Moderate and aggressive investors should have 21% and 34%, respectively.  Commercial real estate also holds a place in a well diversified portfolio.  In conclusion, global real estate should hold about 20% of the assets in a moderate portfolio.
Tim Ord
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Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

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