Always invest in real estate

(written by lawrence krubner, however indented passages are often quotes). You can contact lawrence at: lawrence@krubner.com

My great-grandmother Nanny came over from Europe and invested in real estate. She taught my grandparents, and my father, to invest in real estate. Avoid the stock market. Apparently economists now have evidence that this is a very good idea:

In general, economists would expect that assets with more risk–that is, more likely to rise or fall over time–will tend to have higher returns on average. From the standpoint of investors, the higher returns are needed to make up for the higher risk. This logic suggests that over the long run, a risky asset with volatile prices like corporate stock should have a higher average rate of return than a less risky asset with less volatile prices like housing. But that doesn’t seem to be true. The blue line shows returns to housing, while the black line shows returns to corporate stock across the 16 countries in this sample.. Corporate stock is more volatile, but the average rates of return are quite similar.

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