Here’s the ONLY Way To Invest in a Leading a 14.9% REIT

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Among the many lessons I learned in the aftermath of the 2008 financial crisis, one of the most important was to do my own research. You simply cannot get ahead by chasing whatever tickers are hot on CNBC and Twitter, or by taking the headlines in financial media for granted.

But I must admit, it’s not always comfortable to think like a contrarian and focus on long-term income over a short-term adrenaline rush. It sometimes means sitting on stocks that may seem to “underperform” the high-octane tech stocks everyone’s gushing about. And it sometimes means thinking differently about performance by looking at what’s important to you vs.… Read more

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Sell ‘em if you got ‘em.

And c’mon, we all have ‘em.

Let’s think back a few months. Which stocks are we still holding now that we wish we had sold then?

I’m talking about the dividend dogs that, if we’re being honest, are not deserving of long-term positions in our retirement portfolios.

These mutts have had a fun summer—good for them (and us). Now let’s find them a nice home in another portfolio.

Why the deadline? September swoons are common. The Wall Street guys return from their Hampton homes and sell everything that rallied in August.

The summer rally (recently ended?)… Read more

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“Regular” REITs typically buy physical properties, find someone to manage them, and lease them out. They collect rent checks and avoid paying taxes on most of these profits if they distribute 90% of their profits as payouts. This is the reason REIT stocks typically boast big yields.

Mortgage REITs (mREITs), on the other hand, don’t own buildings. They own paper. Specifically, they buy mortgage loans and collect the interest. How do they make money? By borrowing “short” (assuming short-term rates are lower) and lending “long” (if long-term rates are, as they tend to be, higher).

This business model prints money when long-term rates are steady or, better yet, declining.… Read more

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If you’re waiting for a pullback to put money to work, look no further than small caps.

Early last week, the S&P stopped the bleeding on a harrowing multi-day 2.9% decline. By midweek, “big cap” investors had recouped more than half of their losses.

Was that it? My guess is yes, that was a wrap on the market’s mini-drama for another month or two.

Our intrepid Federal Reserve continues to print a whole lot of cash, which serves to backstop any pullback. The Fed is still buying $120 billion in bonds per month, which adds up to “real money” after a while—nearly $1.5 trillion annually!… Read more

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