Consumers are increasingly skittish about investing in either real estate or the stock market.
But is that fear justified? (Yahoo! Finance)
Even if you settle on one investment over another, there’s so much variance across markets that there’s no guarantee that you’ve made the best choice. You could buy rental property in Miami, but then watch as rent prices skyrocket across the state in Tampa.
All in all, the tried-and-true wisdom still stands: Having a diversified portfolio split between stocks, bonds, real estate and other financial options tends to be the safest way to invest. That way, if any market crashes, there are always a few more to even it out and help you weather the storm.
If you’re still unsure how to divide up your portfolio, here are some tips to help you figure out which investment route is right for you.
When you invest in a stock, you’re buying a piece of a company. As that company grows and its profits increase, so does the value of your stock.
Continue reading the pros and cons of investing in stocks and investing in real estate here.