"I'm inclined to agree that the REITs are over valued. There was a discussion about that on BNN the other day that I remember because it mirrored my own thoughts for the last couple of years. The jist of the discussion was that the market is crazy for secure high yields and consequently has bid the REITs up quite high due to extremely low interest rates and few other alternative Canadian investments."

 

And who do we have to thank for this situation?  The central bankers for artificially lowering rates to perpetuate the debt ponzi scheme and to keep the banks from defaulting.  This is simply forcing investors who need income into high-risk securities.  This is creating yet another bubble.

 

Instead of dealing with the problem of excessive soveriegn debts by writing large portions of them down (and letting banks fail), the powers that be push rates down thereby screwing people who have been prudent with them money.  All I can say with respect to reits and other "high-yield" investments is buyer beware.  I saw much of the same justification of high prices in 2008 and look what happened.  It was only the maniupulation of the governments and central bankers that saved the markets and they, in fact, did nothing but kick the can down the road...now we have a sovereign debt problem globally (it ain't just Europe).  There is no lender of last resort to the governments, the Martians and other ETs have washed their hands of the entire debt situation here on earth.