which rate is accelerating more:the inflation or the appreciation of real estate and stock markets?

Question

Has the real estate and stock markets been advancing more than the rate of inflation percentage wise, creating a parrallel or a deficit or a rock and roll times fotr the common man as investor and cuinsumer?

Answer 1

Good question.

Well, all the three you have mentioned are inter linked. As long as economy is running on the right track, stocks will be bullish & real estate would be in sync. So, the question here is what ur expectations are. if you are looking for long term gains go for real estate. if short term, ur choice would be stock market.

It all finally boils down to your goals & focus in life in each of those fields.

Answer 2

From the theoretical perspective, real estate prices and Stock markets influence inflation very much. All three are interlinked very much.

Lets segregate these 3, Real estate and stock markets are 2 investment avenues for an individual, but inflation is a macroeconomic factor that influences the purchasing power.

If you try to link both the factors, if people get good return on stock markets/real estate investments the purchasing power rises leading in higher spending. which means a rise in prices for products / inflation.

One more point to be noted is the prices of Crude oil, which you must consider in stock markets because the commodity market is as popular as the stock market nowadays and crude is one of the most popular product for the retail investors. When you include this, a rise in crude oil prices results in good return for the investors. and from the economy's perspective it obviously leads to inflation(leads to rise in prices of almost all products because of transport cost unless the govt intervenes.).

Another point to be noted is that Stock prices get influenced by inflation very much as they directly affect the company' s financial performance.

So, we can come to a conclusion that Real estate / stock markets are directly linked to inflation, So it is almost a parallel relationship here between inflation and investments

Answer 3

With a more than 5 years perspective , I would suggest to go for STOCK and that too in Blue chip stocks, as they have outperformed the Real estate and have beaten the inflation too.

Answer 4

in long term 10-50 yr stock market always overcome inflation with safty & liqidity with high return

Answer 5

all the different replies are from people who do no longer make investments. I reccomend moving into a mutual fund or etf. in case you have the time ,you are able to learn on a company and purchase their inventory. authentic sources is terrible impressive now so do no longer even think of roughly it. i think of shares are solid for you.