Stock Market and Real Estate

[Carlton Blair Kutas]

Is there a particular reason investors don’t take the time to learn both? 

The stock market and real estate market have some correlation but I posted this in Investor Psychology because of the mind set similarities that I don’t seem to hear talked about. 

I think if people took the time to think about real estate as a stock it would help answer a lot of questions starting out. For instance, a property focused on high cash flow would be similar to a dividend stock. A property in the Bay Area with negative cash flow would be that growth stock that isn’t quite profiting but you see the future potential. 

Have you taken the time to analyze different investments to find out not just what you want, but what your psychology is built for?

[Scott E.]

I acknowledge that investing in the stock market is a good plan for diversification, but I have no interest in learning about P/E ratios, guidance, technical analysis, etc. So I just buy pretty broad index funds for the most part and hang onto them long term.

Sticking to real estate for my active investing has been a good plan for me because it has allowed me to master the process without being too distracted.