Alright, this post may not be quite what you think. Basically, I'm looking at REITs, at least the top rated ones in Canada and right now they are selling at over 25% draw-down from the start of the year. These are reliable kings and many have been depressed all the way down to near 2020 bottom-of-the-crash prices. I don't think there is much further these can go, and as all the buildings they own also counts as an inflation-hedge, my plan is to keep DCA into these fallen dividend-kings. As for the blue-chip cryptos, it is quite possible with all the massive leverage, that they will continue to fall much further. Even the perma-bull hodlers who have been in there for a long time, have no choice but to liquidate if they are still caught up on leverage. This means another (possible) large catalyst down for fire-sale prices. For now, my plan is to DCA into fire-sale REITs, and be cautious of falling knives in blue-chip cryptos. Best of both worlds (if you can hold your margin), pray for an epic crash in cryptos while buying as much depressed stocks in the meantime as you can. Just resist the urge to put on more leverage. The fed has bungled their economy up good... Russia isn't going to be forgiving. That said, in 5 years it 'may' seem wrong in hindsight to not have focused heavily on crypto at the moment when we look back on 2020. But on a risk/reward... there are some very good equities that don't look like they can fall any further at the moment (knock on wood). Look on the bright side, use your REIT dividends now to buy up spot crypto later. Or if the FED successfully manages to put the US into a great depression again (looks more likely by the day), then you can pay your bills still with REIT distributions.
For Canadian REITs, I would wait until people start panicking about the housing markets. But yes, Canada's biggest export is bubble sized housing prices so REITs would be a good buy *at some point*. Apartment REITs and big box store (Walmart, Home Depot, etc) REITs would be my go to because both of these will be in high demand for the foreseeable future. Buy at a good price. A 3% yield on a REIT is garbage right now. I wouldn't buy until a good REIT is at minimum 10%.
3% is perfect for something like CAP-REIT. Which is Canada's largest. They have a low payout because they are a high-growth REIT. They primarily own apartments, and have a monopoly on them in places like Toronto. No chance of going out of business any time soon.... (knock on wood). They got to Canada's largest size for a reason. RIOCAN is in 2nd position for size in the country, and they had to cut their dividends during the pandemic.
If you're happy with a 3% yield, then just buy QQQ which will in time give you cap gains and yield that will dwarf any REIT.
I wouldn't buy real estate REIT at this time, I see major drop coming next 1-2 years in real estate. I am postponing building a house till then as land costs has jumped, but cause so many trees are dying from Asia beetle will lower some land prices. Am short Lumber and see it coming further down. One entity I see as possible good long term investments are dealing with water, California is in severe status along with many western states. Use to go into Walmart and buy gallons of water jugs, very hard to come by now.
Hmm... Well I'm only planning to accumulate inside registered accounts, so all distributions would be tax-free. I'll have to do some more math sometime on QQQ. Looking at Cap-reit, this seems to match the pattern of what Buffett would call an equity-bond. Sure it has a few dips during crisis, (like now). But it definitely grows. I may just DCA in until I have at least 1% of my portfolio invested there. On the other hand, I may just sprinkle a little bit of cheap Ethereum ETFs here and there.
Bear markets (crypto winters) are very difficult times on the emotions During the last bear market, I worked extra hours at my job and cut down on my posts on ET This time around, I got no job, so I'm reading more books and spending more time with the family, taking small vacation trips here and there I wonder what is the bottom for BTC and ETH, but the thing that is more worrisome is that we may just be at the beginning and could last another 2 years