Monday, June 29, 1998

Wise TV
By Jay Geiger ([email protected])

I was watching Louis Rukeyser the other night, (yes, I know, but someone we all know used to write for his newsletter), when his guest was pushing an investment called a REIT (Real Estate Investment Trust).

Louis showed us some historical data which indicated that the Dow Jones Industrial Average and the S&P 500 Index stomped the stuffing out of these REITs in the last ten-, five-, three- and one-year periods. In some of these periods, the REITs actually lost money.

In his defense, the Wise investment advisor (a.k.a. salesman) said that his product only looks bad when compared to the stock market, but looks much better when compared to other investments. (This is not a direct quote. I was laughing too hard to write anything down.)

Is it just me or is the answer obvious to everyone? If the stock market consistently beats REITs and the "other investments," why should we invest in anything else?

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