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I have some amount of earnings apart from the ones that I save for my necessities. I want the earnings invested in some real estate or may be in stocks. I do have some knowledge on stocks but, earlier my cousin had invested in the stocks and had a set-back. I know that you need to be updated in that but – What is a better option from the two???
Either have their ups or downs. The one you are more educated in is probobly the best option. You could combine the two somewhat by getting into REIT's. Some of them have been battered recently wirh good cause and some without good cause. IMO there is some value in some REITs.
Real Estate or Stocks ---- I would prefer real estate just for the sake that I don’t know much about the stocks ….. but as the case with your cousin goes …. I would advice you to have some investments in the real estatemarket as the place is at a boom now and you may get good returns for the investments there. Being updated on the stock market is a must for investments there but I find investment a risk in the stock market.
Both markets have headed south in 2008 but will offer decent returns in the medium to long term so think about which market you know most about, which would complement your existing portfolio and where you can get the return you require for the minimum amount of risk.
That said, I think both real estate and equities haven't hit the bottom yet so keep your money in cash for a while longer.
Real estate is much safer than stock and is a winner 99% of the time over the long term (20 years). Even those who bought overpriced houses in 2006~7 will be winners circa 2025. If they invested their own money of course.
Stocks can lose half of their value in a few weeks and it takes forever to recover. Real estate never lose half of its value and you can rent it out if you don't ocupy it.
Stocks require knowledge but caring about houses too. If you rely on agencies and professionals for repair and maintenance, you will earn less.
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