Today I purchased a couple of asset classes that I found very attractive; REIT’s and Treasury strips (via ticker: ZROZ). Lately bonds have been selling off along with all interest rate sensitive sectors. I couldn’t resist jumping into Real Estate Investment Trusts (or REIT’s as they’re called). These are way down in price so far this year and they offer very attractive yields. Besides the income they consistently pay shareholders, at today’s prices they offer a great deal of capital appreciation potential as well. I purchased over 7 different, individual REIT’s for a total investment of over $126,000. which makes up 13% of my taxable brokerage account, a generous allocation to this sector. I have one more on my watchlist that I plan to purchase tomorrow, this will bring my REIT allocation to almost 15%, my max for any one sector. My cash allocation has been reduced to 20%. Note: This is an intermediate-term trade.
The other, more bold move I made today was purchasing ZROZ, the PIMCO long term treasury ETF. This is a bit more risky as yields have further to rise over this interest rate cycle. On a short term basis I believe rates have risen enough and this compelled me to place the trade. If indeed yields retreat from here I will profitably exit this trade, which I believe will take place sometime in March (bonds rallying soon). Note: This is a short term trade.
DISCLAIMER: I am not an Investment Advisor and this is not a recommendation to purchase securities. All trades posted on this site are based on my own analysis and opinions and are real money trades placed in my personal account. Investing is risky business and I assume no responsibility for anyone following along on my trades.