Goodman's note haunts me. Covid crash aside, euphoria indeed seems to be driving the market. Some of it is Trump euphoria and some of it is an expectation that interest rates will decline to near zero again driving future profits as interest expenses decline. Interest rates will no doubt decline further, but at what pace? And will we ever get to the almost zero era pre-Covid? I think not. Or, at least not for a long time.
I've run out of contribution room in my tax sheltered accounts so in theory I should be seeking investments that are predicated more on capital gains than dividends. As I am on the edge of retirement and also sitting on a couple of barrels of dry powder, I may just take the tax hit and buy more dividend heavy stocks as they are not immune from a crash, but the dividends themselves are more resilient.
When I retired and started moving into self-manging my savings, NNN was one of the first REITS I purchased. I missed the low after the covid crash in 2020 but was able to get in at a cost basis in the mid-$38's. From there I would sell most whenever the price got above $48 and re-estabish the position under $39. Why should I care about 5 or even 10 chart performance when I can earn 6% dividends and about 27% in gains twice @ over $49 and slightly smaller gains at over $48 several times all the while being able to use some of the profits to re-establish a slightly larger position each time? Using a price from 10 years ago to try and make a point about the viability of entering an investment today is one of the more stupid things both analysts and commenter's do on SA and any other investment forums. What's matters to me is today's price and where it lies on my value scale.
Thanks Paul. NNN is currently my largest REIT holding. Provides great ballast for my portfolio. Like you, I see it as having less downside than other REITS...and less than most other equities. Personally, I am very happy with high single digit returns over the long term, especially if there is less risk.
not exactly on the thread RPD, but have you ever looked at CTRE CareTrust REIT in your travels?
best wishes
P
So I can find it later, I will respond to this in the chat.
you been hacked
Goodman's note haunts me. Covid crash aside, euphoria indeed seems to be driving the market. Some of it is Trump euphoria and some of it is an expectation that interest rates will decline to near zero again driving future profits as interest expenses decline. Interest rates will no doubt decline further, but at what pace? And will we ever get to the almost zero era pre-Covid? I think not. Or, at least not for a long time.
I've run out of contribution room in my tax sheltered accounts so in theory I should be seeking investments that are predicated more on capital gains than dividends. As I am on the edge of retirement and also sitting on a couple of barrels of dry powder, I may just take the tax hit and buy more dividend heavy stocks as they are not immune from a crash, but the dividends themselves are more resilient.
I agree with your summary. And understand the predicament. We each have to make the decision.
When I retired and started moving into self-manging my savings, NNN was one of the first REITS I purchased. I missed the low after the covid crash in 2020 but was able to get in at a cost basis in the mid-$38's. From there I would sell most whenever the price got above $48 and re-estabish the position under $39. Why should I care about 5 or even 10 chart performance when I can earn 6% dividends and about 27% in gains twice @ over $49 and slightly smaller gains at over $48 several times all the while being able to use some of the profits to re-establish a slightly larger position each time? Using a price from 10 years ago to try and make a point about the viability of entering an investment today is one of the more stupid things both analysts and commenter's do on SA and any other investment forums. What's matters to me is today's price and where it lies on my value scale.
Well said!
Nicely reasoned.
Like JaxBill, I am satisfied with high single-digit returrns -- that- never or rarely look back.
Thanks Paul. NNN is currently my largest REIT holding. Provides great ballast for my portfolio. Like you, I see it as having less downside than other REITS...and less than most other equities. Personally, I am very happy with high single digit returns over the long term, especially if there is less risk.