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Portfolio Diversifier: REIT Vs Precious Metals Equity

Monday, June 24, 2013 - 6:50 PM
From The Finanace Buff:

     " After I have the core asset classes covered in my investment
      portfolio — US stocks, international stocks, and fixed income
      — if I’m looking for a good asset class for diversification,
      REIT and Precious Metal Equity (PME) are two good candidates.  ...

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2
cumuluscumulus297 posts since
Jan 16, 2010
Rep Points: 1,374
1. Monday, June 24, 2013 - 7:11 PM
In theory, PME is a good diversifier for this market; but REIT fund is about flat YTD while gold fund is -50% YTD.  Ask yourself this question: Do you feel lucky today?:-)

I personally use TIAA Real Estate as a diversifier.  It is a lot less volatile than FRESX.
4
51hh51hh1,462 posts since
Jan 16, 2010
Rep Points: 6,352
2. Tuesday, June 25, 2013 - 7:58 AM
Perhaps an all-commodities fund might make a better diversifier than just a precious metals fund? Something like the GreenHaven Continuous Commodity Index (GCC), down only 2.12% YTD as of yesterday's close.

Also, why either/or? Why not a REIT or real estate fund and a commodities index fund? I use KIFAX, which is historically far less volatile than other real estate funds. When real estate is flying high it will underperform, but it shines, compared to its competitors, in down markets. It is up 5.49% YTD as of yesterday's close. It yields 6.7%.
2
WilWil242 posts since
Feb 26, 2010
Rep Points: 1,281
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