When the recession began, REITs held up well. Two years ago, the Dow Jones REIT Index rose to over 300. In the next year it slipped modestly, remaining over 250 when many other stocks did much worse. Last September the index fell off the cliff, plunging to under 100 in less than 2 months. It remained oversold until March 2009 and then began its recovery. Since than the Index has doubled from its low to 161. Most attention has been on its gain of 72% from depressed levels 6 months ago (two quarters).

Late last year, risk averse was the motivating force for stock investing causing most securities (especially high yields) to plummet and then continue in the dumps. As the credit crisis receded early this year, risk has come back into vogue and now risk is being rewarded.