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Timing the Market vs Investing in Real Estate

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GMO, a global investment management firm, produced the following 7-year forecast for a variety of classifications of stocks and bonds.

That said, forecasts are exactly that… forecasts. Back in 2010, they predicted a similar but somewhat more promising bleak future. For example, they predicted that US Large cap equities would increase by 0.4% from 2010 to 2017. Reality was that they increased by 12.2%. A little off the mark.

Timing the market just doesn’t work.

Related: 5 Things I’ve Learned Being a Real Estate Investor

Real estate continues to be a possibility for investors looking for good returns while dodging the current market downturn hype. Investing in real estate, although subject to market upswings and declines as well, is a potential alternative.

CREA, the Canadian Real Estate Association, produced the following chart to represent historical average home prices in Canada.

Timing the market or going with the flow in Real Estate? As an investor, the choice is yours.

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