There are three reasons to invest in REIT's: non-correlation with the stock market, capital gains, and yield. The first two have been a bust in recent months, but yield deserves a closer look.

AIGYX yields about 18% as of this writing. I know, I know, it's factoring in possible drops in dividends and further capital loses, but let's look at what is priced in.

Lets assume a horrible economic conditions continue far into the future. Let's assume that rents drop by 1/2 and NEVER RECOVER. That would drop the yield to about 9%. Let's further assume that capital loses continue forever at a rate of 5% per year and that real estate prices NEVER rise above their current level. Even under these conditions this fund will yield 4% as compared to <3% on T-bills. Forget treasuries, I'm buying at this level.

Other opinions?