TIME TO BUY REITS

---

  In the April issue of Income Investor Update Edition, I suggested that the battered REIT sector had finally bottomed out and urged readers to add to their positions while prices were still cheap. That issue was published on April 8. Since then, the S&P/TSX Capped REIT Index has moved up another 4.1%. That may not seem very dramatic but it is further confirmation that a recovery is in place.

On a year-over-year basis, the REIT sector is still way down, off 19.5%. It will take several months to make up those losses, but the trend has started and there is still time to take advantage of it.

Among my personal recommendations, Northern Property REIT (TSX: NPR.UN) has been especially strong. The share price is up $2 from this time last month in anticipation of a solid earnings report on May 13.

RioCan REIT (TSX: REI.UN) has gained $2.33 since I last reviewed it in The Income Investor on March 10, when I rated it as a buy at $19.50. I still consider it to be good value.

H&R REIT (TSX: HR.UN) has made a great recovery from its January low of $17.02. I rated it as a buy at $17.70 when I reviewed it in The Income Investor issue of Jan. 23 and it closed on May 6 at $20.19. If you have not already done so, consider acquiring shares now.  G.P.

The Income Investor is a twice-monthly newsletter that offers advice on all types of income securities including mutual funds, common and preferred shares, bond, income trusts, and GICs. For more information: http://www.buildingwealth.ca/bookstore/productdetail.cfm?product_id=533

IS CANADA RECESSION-PROOF?

---

  The International Monetary Fund has come out with a new economic analysis that says that while the U.S. is likely to experience a short-term recession, Canada should escape. Our growth will slow, says the IMF, but the economy will continue to expand. The reason is our wealth of natural resources. What does this mean for investors? Read the full story at http://www.buildingwealth.ca/News/Featuredetails.cfm?NewsletterID=3116

TAX ANGST

---

  The tax filing deadline has passed but many Canadians are still venting about the frustrations they encountered using software programs to prepare their returns. Their biggest complaints? Hidden price hikes and the absence of help in pension-splitting calculations. Read what our readers have to say at http://www.buildingwealth.ca/News/Featuredetails.cfm?NewsletterID=3122

FREE REPORT - PROFITS FROM THE OIL SANDS

---

  Brand new! The fabulous wealth of the Oil Sands has captured the interest of investors from around the world. With the price of oil at record highs, find out how you can participate in this long-life resource with our new Special Report: 6 Ways to Profits from Canada's Oil Sands. The editors of the Internet Wealth Builder have compiled some fascinating background information on Canada's richest natural resource and pinpointed six completely different ways to invest in the Oil Sands. This is a report you won't want to miss and it is absolutely free. Get your copy at www.buildingwealth.ca/premium/oilsandsbuildingwealthversion.pdf

SELL IN MAY?

---

  The old Wall Street adage says to Sell in May and go away. But with the TSX hitting a new high for the year, is that really such a great idea? Read our views at http://www.buildingwealth.ca/News/Featuredetails.cfm?NewsletterID=3121

TWO GREAT STOCK PICKS

---

  Readers of the Internet Wealth Builder have been making a lot of money from two of our agriculture-based stock picks. Both are Canadian companies.

The first is Calgary-based Agrium (TSX: AGU), which was recommended by contributing editor Glenn Rogers on April 30, 2007 at $46.41. The stock closed on May 8 at $87.84 for a capital gain 89% in slightly more than a year. The second is Potash Corporation of Saskatchewan (TSX: POT), which was picked by contributing editor Tom Slee on Jan. 28 of this year when it was trading at $133.98. It finished at $202.65 on May 8 for a gain of 51% in only three months.

If you havent tried the Internet Wealth Builder yet, why wait another minute? You can read a free copy at http://www.buildingwealth.ca/freeIWB.cfm and sign up to get a second one, also free.

ALL THAT GLITTERS

---

  The price of gold bullion soared to over US$1,000 an ounce in March and then went into a swoon. So is this the right time to buy? Read our views at: http://www.buildingwealth.ca/News/Featuredetails.cfm?NewsletterID=3123

QUESTION OF THE MONTH

---

  Couch potato investing

Q - I just purchased/fully read your book, Sleep-Easy Investing, and I am wondering what your impression is pertaining to "Couch Potato" investing? Also, I am in the process of moving our portfolio to our bank from an investment advisor as I am not happy with their results. Should I expect any transfer fees and if so what do you recommend?  Greg G.

A  Couch potato investing basically consists of buying a portfolio of exchange-traded funds and then ignoring it for the next decade or so. The idea is that over time stock markets will rise and the ETF portfolio will outperform actively-traded accounts or conventional mutual funds.

I am not a big fan of this approach as I doubt that most people have the discipline to maintain the strategy when stock markets go into a deep slide. Human psychology takes over and fear compels people to bail out, often at the market lows. Of course, that defeats the whole purpose of the exercise.

You will see in Sleep-Easy Investing that I do not include equity ETFs on my list of recommended securities for precisely this reason.

As for your second question, yes there may be transfer fees. You would need to discuss these with the companies involved.  G.P.

If you have a financial question, send it to me at gordon.pape@buildingwealth.ca and mark it: Investing Today Q&A. We answer selected reader questions each week at http://www.buildingwealth.ca/qa.cfm. The service is free.

SAVE 37% ON SLEEP-EASY INVESTING

---

  Visit our Best Books page for great value on the top-selling investment and financial books and pick up a copy of Sleep-Easy Investing at 37% off the suggested retail price. Go to: http://astore.amazon.ca/buildicaquizm-20