MNSL

Are Equities Still a Better Investment than Housing?

I think so. I do not think that anybody can sell houses easily now.

We are still in the first stage of housing market downturn. Many houses are in negative equity. With falling employment, recession. Slower world growth, banking crisis and newly emerged credit mess will make housing market more and more vulnerable.

Stocks easily can sell even for loss now but not housing. As a result of this prices will drag down further. I do not think any recovery in the housing market for the next 10 years. By the end of next 10 years investment in equity will be better than invest in housing. We can just compare this at the end of next 10 years.