Stocks and Real Estate, both have produced millionaires. You will hear arguments from both sides of the table and they are all valid. I personally invest in Real Estate (more) as well as Stocks (lesser) and I continue to split between the two.
Real Estate --- Rent usually never goes down. Exceptions--- Some big business that was pumping economy in the town moved, rent would go down as well as economy in that town. You cannot do much about it. As long as you plan on holding your rental properties for a long time you can withstand recessions. But in Real Estate, you have to active. Look for good deals, be ready to pick up phone calls at night, deal with contractors on a regular basis. I will not buy Investment Properties on a loan. Cash is the best way to get into it imho.
Stock Pro--- Less proactive. Usually if you have two jobs and at a phase where pumping all the savings into investments, Stocks are good. Set up Mutual funds and you do not have to keep doing anything except move it to better performing ones every now and then. As long as you are not using it to save up to buy a new car next year buy planning on letting it grow until you retire, it can also withstand retirement. There will be ups and downs, but over a decade usually you would come up better. And stocks is always cash. NEVER borrow money to put in stocks.
All those that keep giving examples of the market crash last year, look at the market today. Those who weathered it and left it alone, are bigger and stronger today.
Those that complain about rental properties sitting empty, most probably you made a bad deal or something has changed in the neighborhood. Just like putting money in a poorly thought stock thinking it will double tomorrow.
IMHO, best practice is to spread your investments. Do stocks, mutual finds, commercial properties, multiplexes, single homes, piggy bank savings (:D)....
