Seeking Safe Haven From The Cyber Fallout?

As dot-coms have crumbled, many investors have sought shelter in the world of bricks and mortar via real estate investment trusts, or REITs. These companies operate properties ranging from office buildings and apartment complexes to hotels, golf courses, and even prisons--and they offer high yields, to boot. "People who thought technology was a one-way ticket to heaven are latching on to REITs as a hedge," says New York investment adviser Louis Altfest.

REITs have appreciated 10.5% so far this year, compared with the 6% drop in the Nasdaq composite index and a mere 1% gain for the Standard & Poor's 500-stock index. As a result, mutual funds investing in REITs have become the third-best-performing fund category in 2000, up an average 8.44% as of May 31.