This is an addon to my blogpost on 'Why I Consider REITs Risky' a few days back.
At times we read about people making piles of $$ investing in a certain instrument or asset. Greed emotion would naturally stir up inside us. However we need to ask ourselves roughly where it is on the fuel gauge? (as analogy)
Person you read about making $$ is most likely making $$ during the earlier to mid stages of the gauge where there's plenty of gas in the tank. People who neglected the 'fuel gauge' & heed the sirens of greed boarded the airplane with near-empty fuel tanks. These investors(passengers) giggled with delight was they soared into the clouds... until the fuel ran out.
Mass panic hits when there's no more gas left to power the flight to profits. When the plane hits the ground, many investors suffered heavy losses.
With those factors i've seen & read about which i mentioned in the REITs risky post, i believe the local REITs are in the red danger zone on the gauge.