“As long as there’s liquid or gas flowing through the line, they generally do very well,” Errico said Thursday. “They pay great dividends – 5% - 7% in some cases.”
He said REITS are fully valued and sensitive to rising interest rates, making them poor bets in the current market.
“The (market) volatility is unprecedented,” Errico said. “You have to look at what you own and have knowledge of what you own…Mind your multiples, figure out what’s cheap or expensive. If you have great stocks, you have to stick with them.”
He said balance is the key to a successful portfolio. He generally recommends that his clients have about 15% of their holdings in foreign investments.