When you post something like that on a RE forum your likely to get a biased response. Then again you won't do much better if you post it on a stock traders forum either I guess.
I say do both! Why not invest in stocks first using a small fraction of your money and REI with the rest. Or if you only have a small amount try stocks first then if you don't like it go with REI. Stock investing is much more liquid than RE investing and so if you "want out" its much easier. That's basically why I would try stocks first.
A few months ago I was going to buy my first property and am glad I didn't. Since then I have taken the $60k I was going to use for that and put it to use in the stock market instead. So far in about 3 months my return has been about $30k. Thats %50 ROI (200% annualized ROI)! Thats a way better rate than I could have gotten in RE anywhere for that short of a period of time, even as a flipper in a hot market! Now I achieved that return mostly using leverage and other tricks that many RE investors think can only be used in real estate. But as many of them already know, education is what it takes to know how to use any area of investing to its maximum potential for profit. And of course you can make money in a stock market going either up or down, you just need to educate yourself on how to do it, and you need to read the market and be right about which way it is heading (in general).
Does this mean I don't wanna do RE investing? Not at all, I'm getting ready to buy something soon. I'm just waiting a little longer for Bernake to raise interest rates and really slam the RE market before I buy. Does it sound crazy that I'm waiting for rates to go up to get a loan?! Maybe. But I'm betting that I will be able to find so many more good deals then and I always try to be a contrarian and do what others aren't.
Point is, learn all you can about both and you will be a truly well rounded investor who is positioned to take maximum advantage of either market at any given time for the best potential profits.
