Dumping all my investments in REITs.

Reader says...
I recently started buying REITs and following online blogs online.

I do my own diligence which I think is sound but cannot help but be worried when I see negative things about REITs being posted.

Classic consumer economics behaviour from me cos scared Liao lol.







Anyway, I know there is a difference between Traders and investors.

There is one particular trader that says REITs and dividend stocks will suffer soon.

Should I be concerned? Because my investment strategy is buy and hold.

AK says...
It depends on what you are looking for and if your investments can deliver.

In an inflationary environment, (interest rates should go up and, naturally,) bonds will suffer but we should not mix up bonds and REITs. They are not the same thing.

Bond holders get paid a coupon and that is fixed. 

As interest rates rise, bond prices will fall (as Mr. Market expects a higher yield to buy those bonds and as the coupons are fixed, the bond prices must fall to give a higher yield).







Businesses and REITs have the ability to raise prices and that is what they usually do in an inflationary environment.

Invest in what we understand and disregard the noise.

When we buy bonds, we are money lenders. We charge interest for lending money.

When we invest in a business, we are partners and we share the ups and downs.








REITs remain a relevant tool for income investors but, to be fair, not all REITs are good investments.

Regular readers know that I have reduced my exposure to REITs but it is not for as simplistic a reason as interest rates are rising.


Rising interest rates alone is not strong enough a reason for me to sell down REITs.

Try not to be overly pessimistic nor overly optimistic. Try to be pragmatic.








Related posts:
1. Why bonds and which ones?
2. Largest investments updated.

Get paid for (or get dividends from) blogging?

Someone asked me if I get paid for blogging?

More specifically, he asked if I get paid for promoting "Dividend Machines".

My answer?

Yes, of course, I get paid.





The blog on "Dividend Machines" was labelled "Advertorial".

Anytime you see a blog labelled "Advertorial", it means the blogger will receive a fee.

OK, not all bloggers would do this but honest bloggers would.

I was prepared for some nasty remarks from him as I know there are people who are unhappy with bloggers being paid to blog. 






I really don't want to go into a debate on the subject.

It isn't a productive use of my time.

What?

Spending hours each day in the virtual world of an MMORPG is a productive use of time?

Ahem. Weather today nice right?

Bad AK! Bad AK!





So, you can probably understand that I was pleasantly surprised when, instead, he asked why am I not blogging more regularly if I get paid to blog?

Apparently, he is thinking about becoming a blogger to make a living and is trying to learn from my experience.

I told him quite bluntly don't learn from AK.

Why?


I did not give him the usual "AK is lazy" type of reply because something like this should be addressed seriously.





AK is a hobbyist blogger which means blogging is a hobby and if I do make some money blogging, it is a bonus.

There are bloggers who blog for a living and he should learn from these bloggers instead if he wants to make money as a blogger.

Who are these bloggers?

Don't ask me lah. I blur.





Having said this, I believe that blogging in itself is not a good way to make money but it can help someone with products or services to sell.

AK has no products or services to sell.

AK is, however, helping to promote "Dividend Machines".

Yes, I get paid for doing this but, frankly, I believe in this product and the people behind it so much that I would do it even if I were not paid to do so.





Since I am on the topic, for those who are interested, the 2018 intake for "Dividend Machines" will end 2 days from now on the 18th.

If you are clueless about investing for income or would like to polish your skills, the sooner you learn more, the faster you would achieve your goals.

Everyone should work because they want to and not because they have to.

Investing in income generating assets will go a long way to help achieve this.

I know this for sure because I have done it and, for sure, so can you.

My blog on "Dividend Machines":
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