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In the February 2010 Issue of Property Investor News
Investor Opinion
What I found interesting in the article mentioned above is the suggestion that if you are not doing well you can switch to something else and the second point concerns how to measure success so you know how your business is performing.
Switching direction when the grass is greener
Some residential property investors seem to believe that if their results are weaker than what a different asset class is producing they can switch. Phrases you will hear include 'time to rebalance', 'to diversify' or 'market timing'/ 'switching across asset classes'. Because it is easy people compare results for shares, bonds and other assets. Even the financial press indulges in something similar. Mostly, articles appear most at the turn of the year showing the results for house prices vs. a stock market index such as the FTSE (UK) or Dow Jones Industrials (US). Comparing a leveraged investment that produces an income and where active management is implied with an unleveraged investment that may have a dividend stream and where active management is prohibited is a stretch.
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