i luv reits, page-18

Avarice has summed it up very well, I think. The discrepancy between bond yields and reit dividend yields, which are due to extremely low share prices, is too large to be sustained and must close. If typical market behaviour is displayed there will be a gradual warming up to reits as confidence starts to slowly return and then there is a high chance of a very strong spike as share prices go up and everyone wants to jump on the bandwagon.

I read today that only 6% of potential investors are currently thinking of buying stocks, way more are looking at property, somewhere around 40% from memory. If the time to get in is when everyone else thinks you shouldn't, then now must be that time.

As the yields become more widely known and cash investment returns dwindle to less than inflation and a more normal number of people think about buying stocks again and those property buyers think that a share market based property investment makes sense, then hopefully we'll see these stocks return to somewhere near their old values.