Which is better? Please don't get all technical like saying "Your question is wrong, none are better" I need a clear answer. I'm leaning towards real estate because I barely know anything about stocks, I just want to get rich. I'm 15 years old. Thanks!
you really need both in mutual funds.
The US markets present returns within the variety of 6to eight%. Stocks: Try making an investment within the establishing markets....China and India are each correcting with international markets and ....its decide on up time. Over the final 50 years Stocks have furnished the satisfactory returns over different investments; nevertheless, bear in mind the enron debacle.You have extra manipulate in Real Estate.
Real estate is considered safer than stocks but riskier than bonds however real estate is a concentrated risk as a lot of capital is being invested and is usually leveraged to do so, that is you borrow money to do so. The beauty of stocks is that you can manage your risks by not investing everything on one investment but with real estate you are investing money that you don't even have yet. To demonstrate concentrated risks, imagine that you have the opportunity to wager on a series of coin tosses, one toss at a time. If you win, you win twice your wager plus your wager is returned to you but if you lose, your wager is lost. This is a money making opportunity as you will gain $1.50 for every $1 lost. If you risk nothing by wagering nothing with each toss, you will gain nothing but you will also lose nothing. The more you wager, the more that you will gain. But if you wagered everything on each toss then you will lose everything with the first loss. At what point does this money making situation lose money, at what point do you stand to gain the most. With this coin toss, any wager over 50% of your portfolio will result in a loss, at 50%, the volatility will cancel out any gains that you may have, at 25% you gains are the highest. Over betting is a sure way to ruin a good investment opportunity, real estate is a good investment opportunity but you tend to be investing everything you possibly can on it so if it does mess up, you are so screwed.
