Very nice analysis. "Real Estate" is such an interesting asset class because a house in Detroit will perform differently than a house in San Francisco. This makes it hard for the everyday homeowner to compare their house vs. the stock market on an individual level. Another significant difference is the general illiquid state of owned real estate (not funds). Individuals may not want to have 100% of their wealth tied up in a house when a crisis hits. Maybe we also need a chart on how mortgages and leverage can be better utilized to improve real estate gains vs. stock.
This chart definitely makes you want to stay diversified and invested for the long term!
Very nice analysis. "Real Estate" is such an interesting asset class because a house in Detroit will perform differently than a house in San Francisco. This makes it hard for the everyday homeowner to compare their house vs. the stock market on an individual level. Another significant difference is the general illiquid state of owned real estate (not funds). Individuals may not want to have 100% of their wealth tied up in a house when a crisis hits. Maybe we also need a chart on how mortgages and leverage can be better utilized to improve real estate gains vs. stock.
This chart definitely makes you want to stay diversified and invested for the long term!