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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I read with interest your recent article in the Post and was intrigued by the comment that research shows 90% of portfolio returns come from sector allocation - if a person wanted to take advantage of that, in a simple, easy to manage and inexpensive way (ignoring taxes for the moment) what would be your view be on an approach where one's equity component of their portfolio consisted entirely of a number of ETF's with each one of the ETF's focused on a particular sector, with a periodic (say quarterly) rebalancing? What specific ETF's would you suggest for such a portfolio? Thank you.
Read Answer Asked by RICHARD on May 20, 2016
Q: I understand that some individual reits are considered 'fully valued' on a P/E basis - based on historical 'norms'

question: looking at ZRE can you provide a 'rough' calc on the overall P/E with an eye to whether you feel it is at, near or over its traditional long term valuation range

or, more importantly, based on metrics you (5I) would use, what is your currently concern about reit valuations?

thank you in advance
Read Answer Asked by Robert on May 18, 2016
Q: Your income portfolio shows this REIT to have a yield of 5.5%. Not bad in today's low interest rate environment. It seems that reits are trading at historically low yields. How high do you think the yield on ZRE or reits in general wowuld go if interest rates eventually normalize? For bonds, I would simply use the duration to calculate the price risk, but reits do not have a fixed term, even though they are ofter referred to as "bond proxies". Can you provide some insight into how high reit yields could go if interest rates were to normalize?
I really appreciate your work.
Thanks,
Read Answer Asked by Hans on May 13, 2016
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