Another Look at REITs from a Global Perspective

Global Pensions.com does a great job of explaining the pros and cons of REITs as an investment vehicle, particularly from a global diversification perspective. It's a long article, but don't click away without at least skimming for some good information. Some statements:

• Month by month, correlation to equities is higher.
• Out two to three years, equity correlation is much lower.
• Globally, some new REIT investors are holding back for market stabilization.
• Valuations look much better with the past year's price drops.
• Look for more pension funds to increase their REIT holdings in the next year.
• REITs are long term, five or more year, investments for the best results.

There's a lot more in this article if you're considering REITs, or just want to learn more about them.