re: REIT's

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Your article quotes CMG. They are terrible outfit. They are like the people that pay structured settlement cases $.10 on the dollar. They buy shares at dirt cheap prices to reap the profits later when they full cycle. If REITS are so bad then why do they want to buy the shares?

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Because they are knowledgeable about the underlying assets and are at a very low margin of error at those prices. If the sponsor ceases redemptions where do the investors go to liquidate otherwise? Another retail investor stuck in the same investment?

Your comment on VNQ and my supposed pumping of it, that is not what I did. I suggested it as a low cost, liquid alternative. I am not even sure you understand correlation of asset classes and change thereof over time. I would not add nontraded REITs to supposedly diversify my portfolio based on many things, like high commissions, lack of transparency of asset valuations and FFO which become more volatile, very illiquid when risk escalates which is when one desires diversification of supposed non-correlated assets if cash needs to be raised, dividends can be dropped, etc.

Why are nontraded REITs even considered an alternative investment in your nomenclature, it's commercial RE which is correlated with general public equity in the event of financial and economic shocks/recessions. People can either recognize it for what it is or not.

I made a lot of money in REITs in 2000-2006. I know full well what they are. David Swenson of Yale would strongly advise against retail investors buying nontraded REITs, it is what it is, you can believe what you want, he is a lot better investor than I am.

Read the entire article, not just the excerpts.

I recently analyzed a relative's holdings in a full service account with a national broker. 2.3% annual costs based upon high cost mutual funds and a wrap/advisory fee, what a load of shite. Giving away at minimum 200 bps for some yahoo to "manage" the account. The effect on long term returns is crippling, and am totally unimpressed with the industry that sponsors ripping people off. I feel sorry for people that have to use advisors, just as I feel sorry for people stuck in high cost crappy 401k/403b plans.

Why wouldn't Cole have provided a low cost liquid option before? I doubt the reason now is because they are being generous. Is the industry being forced into this due to legal and other issues?