3 ms·
Which is ridiculous, because an S&P500 index fund is a much less risky asset over 30 years than a 4-bdrm house on Maple St in Anywhere, Michigan, yet 20:1 lever
by cylinder 12y ago
Which is ridiculous, because an S&P500 index fund is a much less risky asset over 30 years than a 4-bdrm house on Maple St in Anywhere, Michigan, yet 20:1 leverage is available for the latter. Unfortunately the government favors homes as an asset class and has distorted the market with policy.
I'd much rather put $50,000 down on something like a 30-yr mortgage for $250,000 in a diversified index fund than do the same in a house. But alas this isn't an available product.
- refurb 12y agoI'd much rather put $50,000 down on something like a 30-yr mortgage for $250,000 in a diversified index fund than do the same in a house. But alas this isn't an available product. I agree with your point, but at the same time I'm not sure I'd want the irrational exuberance that we saw (and will see again) in the real estate market to start happening to equities!