the reits have been oversold and now is the time to buy certain ones. as for cd's yes it does tie up your money for years but everybody had different goals for their money remember a lot of people got burned in the bear market that we had, and do not wish to return to the market. My mother and father in law have never owned a stock in their lifes all there retirement is in bonds cd's and land.
With the stock down, the yield is now up almost 3/4 of a point(to over 7%), which has more than discounted any increased competition from CDs or similar "lower" risk instruments. I mean you still get less than 4% on most 5 year CDs and you have to tie your money up five years to get that. Plus, what inflation protection or appreciation potential do you get from a CD, as compared to owning real estate? Zip.
I think the whole concern is overblown. Reminds me of a year or so ago when the REITs all got hit (temporarily) on the concern that the new tax bill that was lowering the capital gain on dividends from non-REIT companies would also present all this competition to REITs. (the market missed the fact that REITs yields were still going to be 2-3x what non-REIT yields were). That turned out to be overblown, too, and REITs have gone way up since that concern drifted away.
Rising Rates can still hurt. There are people who own this stock just for the div and yield. rising rates would give them the chance to jump into certifcate of deposits and advoid the swings of the market and sell of their shares of stock and drive down the price.
"Once again, the fickle market changes its mind in two minutes (again)."
This is why I decided to invest in REIT's many years ago. I have always been paid (dividends) well during various market shakeouts. Plus, the cream (e.g., MAA) ultimately rises to the top. Who could ask for anything more???
Here is a perfect example of the type of stock that I short. I got this flyer in the mail monday from this stock promoter pushing a stock called Trimedia (TMEG)its trading at 1.90 go read their 10K. Once in a while I will buy a pink sheet Stock and hold hoping it will go up ( key word Hoping) The only one I own at the moment is SinoFresh (sino) I have a small lose at the moment but the company is ramping up sales and disturbution of there Sinofresh sinus spray. Buy the way the Product does work very well if you are alergic to molds and pollens Walgreens should have it.