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USA Today
2 days ago
- Business
- USA Today
Real estate vs. stocks: Which investment builds more wealth over time?
Putting money into real estate and stocks are two popular ways to grow your wealth. Home values have risen significantly, especially with demand being hot in the past few years. A red-hot housing market has inflated values across the globe. And while things have cooled of late, prices are still much higher than they were just a few years ago. But which of these investment options is better for the long haul: real estate or stocks? Here's what the data says. The stock market has been the winner, and it's not even close According to data going back to the start of 1995, the Case-Shiller Home Price Index, which tracks housing prices, has risen by more than 310%. By comparison, the S&P 500 index has increased by more than 1,200%. And when you include reinvested dividends, the total returns are more than 2,200%. S&P 500 vs the housing market data by YCharts Different housing markets, will, of course, experience different returns. But when taking a broad look at the two investments, it's evident that the stock market as a whole is generally the better long-term investment than real estate. Profits on real estate can look incredible, and that's because to buy a home you're investing hundreds of thousands of dollars into it. In some markets, you might not be able to even buy a home for less than $1 million. With so much invested into an asset, the profits can be significant, whereas with stocks, investments are typically smaller. But if, for example, you invested $500,000 into the S&P 500 and it simply rose at its long-run average of 10% for five years, then you'd be sitting on a profit of more than $300,000. If you invested $1 million, then the profit would be more than $600,000. Now these kinds of profits start to become more eye-catching, and that's because the original investment is so significant. Why investing in stocks can make more sense than investing in real estate The large numbers from real estate profits can make it seem as though investing in housing can yield better returns. But when you adjust for the size of the investment and you strictly look at the percentage return, the story looks much different, and it makes it more evident that investing in stocks may be the better option. But there are also other factors that tip the scale in favor of stocks, including liquidity. With stocks, it can be easy to get in and get out of an investment while incurring minimal costs. Investing in real estate, however, can be both time-consuming and costly. Plus, you are tying up money into a single asset whereas with stocks you can diversify across multiple companies or through 500 of the leading stocks as with the S&P 500 index. Investing in the stock market has yielded better returns over the years and it's a safer long-term strategy. Even if you're not sure what to invest in, tracking the S&P 500 through an exchange-traded fund can be an easy way to invest in the stock market while taking on minimal risk. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. Where to invest $1,000 right now Offer from the Motley Fool: When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 831%* — a market-crushing outperformance compared to 175% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you joinStock Advisor. See the stocks »
Yahoo
3 days ago
- Business
- Yahoo
Thinking About Whether to Invest in Real Estate or the Stock Market? Here's What Has Historically Been the Better Investment.
Investors have achieved significant gains through both the stock market and housing market. Home sales can yield large profits, but they also require significant investments. Thanks to compounding, investors can also generate sizable returns from the stock market. These 10 stocks could mint the next wave of millionaires › Putting money into real estate and stocks are two popular ways to grow your wealth. Home values have risen significantly, especially with demand being hot in the past few years. A red-hot housing market has inflated values across the globe. And while things have cooled of late, prices are still much higher than they were just a few years ago. Investing in stocks, however, is also a traditionally safe investment option. The S&P 500, for instance, has averaged an annual long-run return of 10%. Through the power of compounding, those gains can add up significantly over time. After 10 years, a 10% compound annual return would mean your investment is up to more than 2.5 times its original value. After 20 years, it would swell to 6.7 times its original value. But which of these investment options is better for the long haul: real estate or stocks? Here's what the data says. According to data going back to the start of 1995, the Case-Shiller Home Price Index, which tracks housing prices, has risen by more than 310%. By comparison, the S&P 500 index has increased by more than 1,200%. And when you include reinvested dividends, the total returns are more than 2,200%. Different housing markets, will, of course, experience different returns. But when taking a broad look at the two investments, it's evident that the stock market as a whole is generally the better long-term investment than real estate. Profits on real estate can look incredible, and that's because to buy a home you're investing hundreds of thousands of dollars into it. In some markets, you might not be able to even buy a home for less than $1 million. With so much invested into an asset, the profits can be significant, whereas with stocks, investments are typically smaller. But if, for example, you invested $500,000 into the S&P 500 and it simply rose at its long-run average of 10% for five years, then you'd be sitting on a profit of more than $300,000. If you invested $1 million, then the profit would be more than $600,000. Now these kinds of profits start to become more eye-catching, and that's because the original investment is so significant. The large numbers from real estate profits can make it seem as though investing in housing can yield better returns. But when you adjust for the size of the investment and you strictly look at the percentage return, the story looks much different, and it makes it more evident that investing in stocks may be the better option. But there are also other factors that tip the scale in favor of stocks, including liquidity. With stocks, it can be easy to get in and get out of an investment while incurring minimal costs. Investing in real estate, however, can be both time-consuming and costly. Plus, you are tying up money into a single asset whereas with stocks you can diversify across multiple companies or through 500 of the leading stocks as with the S&P 500 index. Investing in the stock market has yielded better returns over the years and it's a safer long-term strategy. Even if you're not sure what to invest in, tracking the S&P 500 through an exchange-traded fund can be an easy way to invest in the stock market while taking on minimal risk. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $402,034!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,158!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $704,676!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of June 23, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Thinking About Whether to Invest in Real Estate or the Stock Market? Here's What Has Historically Been the Better Investment. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
22-06-2025
- Business
- Mint
Wall Street week ahead: All eyes on Middle East conflict, Jerome Powell's testimony, PCE inflation, personal income data
Amid the escalating Middle East conflict, Wall Street investors will have a plenty of economic data to look forward to in the week ahead. Tensions in the West Asia deepened after the United States joined Israel in attacking Iran. The US attacked three nuclear sites in Iran on early Sunday. In an address to the nation from the White House, US President Donald Trump said that Iran's key nuclear sites were 'completely and fully obliterated'. In response, Iran's Foreign Minister Abbas Araghchi stated that the time for diplomacy had passed and that his country had the right to defend itself. 'The warmongering, a lawless administration in Washington is solely and fully responsible for the dangerous consequences and far reaching implications of its act of aggression,' he said at a news briefing in Turkey. In terms of the US economic data, focus of market participants will be on the Personal Consumption Expenditures Price Index, the Federal Reserve's preferred inflation gauge, personal income and spending data, and home sales numbers. Spotlight will also be on US Fed Chair Jerome Powell's testimony before the House Financial Service Committee on Tuesday and Wednesday. On June 23 (Monday), separate reports on S&P flash US services PMI for June, S&P flash US manufacturing PMI for June, existing home sales for May will be released. On June 24 (Tuesday), data on S&P Case-Shiller Home Price Index (20 cities) for April and consumer confidence for June will be declared. US Federal Reserve Chair Jerome Powell is scheduled to testify before the House Financial Service Committee on Tuesday. On June 25 (Wednesday), data on new home sales for May will be released. On June 26 (Thursday), separate reports on advanced US trade balance in goods for May and second revision of first quarter Gross Domestic Product (GDP) will be released. On June 27 (Friday), data on consumer sentiment (final) for June, personal income for May, personal spending for May, and PCE Index for May will be released. Following companies are due to report first quarter results in the week ahead — FactSet Research, Commercial Metals, FedEx, Carnival Corp, BlackBerry, Micron, Paychex, Daktronics, Nike, Walgreens Boots, and Concentrix. US stocks closed mixed on Friday. The S&P 500 lost 0.21%, while the Nasdaq Composite shed 0.49%. The Dow Jones Industrial Average, however, rose 38.47 points, or 0.09%, to 42,210.13. In the bond market, the yield on the 10-year Treasury edged down to 4.37% from 4.38%. The 2-year yield fell to 3.90% from 3.94%. Oil prices fell on Friday as the US imposed new Iran-related sanctions, marking a diplomatic approach that fed hopes of a negotiated agreement. Brent crude futures ended down $1.84, or 2.33%, to $77.01 a barrel. US West Texas Intermediate crude for July lost 21 cents, or 0.28%, at $74.93. Brent rose 3.6% on the week, while front-month US crude futures increased 2.7%.
Mint
27-04-2025
- Business
- Mint
Wall Street week ahead: Focus on Q1 GDP, jobs data, PCE inflation, earnings from Apple, Microsoft, Meta Platforms
Wall Street investors in the week ahead will have plenty of economic data and quarter results from four of the seven magnificent companies. Amid uncertainty over tariffs battle between the United States and China, market participants will closely watch key economic data including GDP numbers for first quarter, consumer spending for March, Federal Reserve's preferred inflation gauge - Personal Consumption Expenditures (PCE) Price Index for March, manufacturing reports for April, and jobs data for April. US President Donald Trump said in an interview published on Friday that tariff negotiations were under way with China, but Beijing denied any talks were taking place. On earnings front, quarter results from Apple, Microsoft, Meta Platforms, Amazon, Honeywell, and Pfizer will garner traders' attention. On April 29 (Tuesday), separate reports on advanced US trade balance in goods for March, S&P Case-Shiller Home Price Index (20 cities) for February, Consumer Confidence for April, and job openings for March will be released. On April 30 (Wednesday), separate reports on ADP employment for April, GDP for first quarter (Q1), Employment Cost Index for Q1, Chicago Business Barometer (PMI) for April, consumer spending for March, personal income for March, PCE index for March, and pending home sales for March will be declared. On May 1 (Thursday), separate reports on S&P final manufacturing PMI for April, ISM Manufacturing for April, and TBA Auto sales for April will be unveiled. On May 2 (Friday), data on US non-farm payrolls for April, unemployment rate for April, and factory orders for March will be released. Following companies are due to report first quarter earnings in the week ahead — Waste Management, Roper Technologies, Domino's Pizza, Visa, Coca-Cola, Honeywell, Pfizer, Spotify, Starbucks. Microsoft, Meta Platforms, Qualcomm, Caterpillar, Apple, Amazon, Eli Lilly, Mastercard, McDonald's, Exxon Mobil, Chevron, Cigna, and Apollo Global Management. US stock indices gained on Friday, buoyed by technology-related shares. The Dow Jones Industrial Average rose 20.10 points, or 0.05%, to 40,113.50, the S&P 500 gained 40.44 points, or 0.74%, to 5,525.21 and the Nasdaq Composite gained 216.90 points, or 1.26%, to 17,382.94. The US dollar rose 0.67% against the yen at 143.555, while the euro fell 0.11% to $1.1377. The yield on benchmark US 10-year notes fell 3.7 basis points to 4.268%, from 4.305%. First Published: 27 Apr 2025, 10:20 PM IST
Miami Herald
24-03-2025
- Business
- Miami Herald
Economic Week Ahead: Reports will signal if slowdown is a real threat
When 2025 began, many economists, investors and Wall Street analysts worried about a choppy first half. Their primary focus was the stock market, which ended the year at record levels and looked heavily overbought. But investors and stock junkies may have overlooked other issues, like stagnant housing markets, pressures on small retail businesses. and rising bankruptcy filings. Don't miss the move: Subscribe to TheStreet's free daily newsletter This week the picture will come further into focus to help gauge the economy's resilience. If the numbers are bullish, stocks might shoot higher. Sunday futures trading is showing a solid bet that the numbers might be least benign. And perhaps President Donald Trump's tariff decisions, due April 2, might prove less punitive than thought. The president's aggressive posturing against Canada, Mexico and China through February and into March were among the reasons stocks fell back. The Standard & Poor's 500 Index fell 10% between Feb. 19 and March 13. Still, higher tariffs will be felt across the country. The biggest impacts will be felt in states with economies tied to exports, especially Texas, California and Louisiana. California, New York, Texas and Illinois are states that see the most import activity. Here's what to look for this week: Personal Consumption Expenditures Price Index, due Friday This is the week's most important report because the Federal Reserve, from Chairman Jerome Powell on down, watches it most closely. The index is expected to show a 2.5% year-over-year gain. Core PCE (which strips out food and energy) is expected to show a 2.6% gain. Better-than-expected data on this will cheer investors and the Trump administration. Related: April hasn't even started but is already affecting stocks Monday: Standard & Poor's purchasing managers index reports on manufacturing and services for February. These are estimates of goods and service orders that organizations have put together and thus are indicators of future activity. A reading above 50 signals expansion. Below 50 is a sign of slowing. In January, the Services index fell below 50 and was at its lowest level in 25 months. Services data matter because the U.S. economy is largely services-oriented. Manufacturing activity was still strong. The current estimates for this week's reports are for services to rise above 50, The manufacturing PMI was still be above 50 but down slightly from January. Tuesday: New-home sales and the S&P Case-Shiller Home Price Index for February. The first estimates of sales of new homes by builders. Many have resorted to subsidizing mortgages to get sales through. The Case-Shiller report tracks price trends in 20 markets. Bloomberg/Getty Images Tuesday: Consumer Confidence Index for February from the Conference Board. The index is derived by asking consumers to answers queries about current and future expectations. This is so-called soft data because it measures attitudes at specific times. (It's not hard data like the unemployment rate.) But this report and the University of Michigan Consumer Sentiment report say there is a relationship between consumer attitudes and what might happen in the economy. Note: A final Consumer Sentiment report for March is due Friday. Related: Tesla's Elon Musk offers Americans cheaper cars, robot friends Wednesday: Durable Goods orders for February. This indicator, due at 8:30 a.m. Eastern Time Wednesday, suggests whether businesses are becoming more confident about the economy. Transportation equipment orders will also be watched closely because they can signal how companies like Boeing (BA) and Ford Motor Co. (F) are faring. More Economic Analysis: Retail sales add new complication to Fed rate cut forecastsCPI inflation surprise resets tariff talkDoes Friday's big rally mean the worst is over? Thursday: Initial jobless claims. This weekly report from the Labor Department is an early indicator of job-market problems. So far in 2025 the jobless claims rates have been steady at around 220,000. And continuing claims, made by workers laid off for extended periods, are about 1.9 million. For now, the situation is stable. Thursday: Pending home sales for February. The National Association of Realtors report measures housing contract activity based on signed real estate contracts for existing single-family homes, condos and co-ops. It is a decent measure of housing demand and whether sales can go through. In January, the report showed sales falling 4.6%. The Los Angeles fires and horrible winter weather in the Midwest and South may have depressed activity. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
