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2017 Looks Good For REITs

REITs may perform well in 2017, apathy could kill the advisory business, and the SEC warns investors about potential scams.

While many are worried about REITs with interest rates finally rising, the researchers at Seeking Alpha think the stars are aligned for the sector to perform well in 2017. Even if the Fed follows through on plans to raise rates, according to a REIT expert and author at Seeking Alpha, steady increases in rent and controlled supply should buoy REITs. The top recommendation was the New York REIT, which Seeking Alpha says is likely to do well in 2017, with holders expecting distributions in excess of 20 percent of today’s market price. The site also recommended investors look at healthcare and self-storage REITs, and cautioned that hotel and assisted living REITs carry more risk.

Robos Won't Kill Advisory Industry - Apathy Will

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Advisors need to choose a path beyond the one they’ve been on for the past 15 years, yet too many haven’t even started, says Michael Kitces in a good state-of-the-industry Q&A with ETF.com ahead of his presentation at next month’s Inside ETFs conference in Hollywood, Fla. (The Inside ETFs conference and Wealthmanagement.com are both owned by Informa.) Advisors don’t need to compete with robos, but do need to define a value proposition above and beyond what a robo advisor can do (i.e. allocate a portfolio.) Advisors that try to compete with robos on price alone are doomed to failure; instead, they need to offer real services to clients that go beyond portfolio management. “If you ever want to get another client for the rest of your life, doing what you've done for the past 20 years won't cut it. And you can see that across the entire advisory landscape right now,” he says.

Investor Alerts for 2017

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A New Year brings new investment scams. The Securities and Exchange Commission’s latest investor bulletin outlines 10 investment tips for 2017. The agency warns against “can’t miss” and “guaranteed risk-free” investment opportunities, as well as using social media as an investment tool. The bulletin also urges investors to pay attention to affinity fraud, investment fees and active trading. “According to researchers, other common investing mistakes include focusing on past performance, favoring investments from your own country, region, state, or company, and holding on to losing investments too long and selling winning investments too soon,” the SEC says.

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