So what about this: http://www.tiaa-cref.org/performance/retirement/profiles/1009.html Does anybody believe that you could have a $15B investment in real estate and be down only 1.3% this year? I wish I could short this thing and raise a fuss.
The difference is liquidity, right? My model says that this abnormal economic state of recession that only occurs once every 20 years doesn’t warrant my real estate portfolio to be marked down to what people are willing to buy it for. I’m keeping my portfolio. I have no reason to sell it. Once this abnormal economic state passes people will be willing to buy it for at least 14.805B. I have patience.
Kind of believable, yes. Look at Vanguard REIT Index ETF (VNQ), down slightly as well (ignoring last week, though!!!). Look also at ryn, and dre. Before last week, these were all up.