Hi Steve, Re: your REIT article.............
By coincidence, the V.I.E.W. decided to sell some VNQ today. I let 5% of
it go to others at the tidy price of 84.69/share. While I hate to sell
income generators and store more cash, it had been a very long time
since my last sale (2013). Having a bit more cash on hand is fine for
now.
With REITs like VNQ I've been content to cap the cash reserve at 30%
with 70% invested. Because VNQ has been rising, the cash content had
dropped by dilution to about 28%. So, the sale put the cash just above
my target and brought things back into balance. I've owned REITs and
REIT funds since the late '80s and they have been good earners and AIM
has managed the large but infrequent price swings.
I use settings of 10% Buy SAFE, zero Sell SAFE, and 10% of Portfolio
Control for minimum trade value. In this case, with the cash just below
my target and I'm getting a sell signal, I sneak up on the target by
selling just 5%. I keep the buys larger, however. If cash were just 20%
I'd sell the full 10% of PC value on a sell signal.
I use "vealies" to control the cash level if I'm still getting sell
signals and have 30% or more cash.
So, I'm glad that guy wrote the article. He may have helped me get my
trade done today!
