Stocks Or Real Estate

Rafael Springer
Jun 22, 2018 · 3 min read
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There are two types of questions that arise when comparing stocks and real estate investment. Which one is a better investment? and which one is a safer investment? People can have opinions but opinions are not as useful as fact. The following research what is better and what is best.

Rate of return on all

Equities vs real estate

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Risk and return

Rental properties

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Measuring Risk vs return

Treasury bonds are at a Sharpe ratio of about 0.2. For stocks, the ratio is at 0.27. These returns are strong but still volatile. The risk is very high in such cases. For residential real estate the Sharpe ratio is 0.7. That is a figure too powerful to ignore.

Returns and GDP

What about bonds

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