Real estate investment trusts are on the move again, and Ross Smotrich, an analyst at Barclays Capital, thinks now is a perfect time to buy blue-chip REITs at bargain prices. (For another take on REITs, see page 108.) He likes Boston Properties ( BXP, 50) , which owns classy office buildings like Boston's Prudential Tower, San Francisco's Embarcadero Center and, in Manhattan, 399 Park Avenue, Times Square Tower and Citigroup Center.
People perceive these as risks rather than opportunities, which cause some to engage in self-destructive behavior by buying overvalued supposed riskless assets, such as US Treasuries, and selling incredibly profitable, yet highly discounted dividend paying blue chip stocks, which provide safety and income at bargain prices.