> Why buy stocks and bonds when you can buy a house that pays $500/mo rent on a $5000 purchase? 500/mo * 12 mo = $6000 a year. At $5000 investment that's a re

> Why buy stocks and bonds when you can buy a house that pays $500/mo rent on a $5000 purchase? 500/mo * 12 mo = $6000 a year. At $5000 investment that's a return of 120%, as another commenter pointed out. Why invest in anything at less than 120% return? Either a) you've discovered some capital allocation inefficiency, i.e. trillions of $$$ are being foolishly allocated into places like stocks and bonds when higher returns obviously exist or b) you don't fully appreciate the risks that come with the 120% annual return (I guess there is another option, that the scenario doesn't exist, but I'll take your post at face value and assume that it does.)