Simple index funds tend to beat the overall nationwide RE market over the long term. Of course individual stocks and individual RE markets can significantly beat or lag–the trick is getting in on those leaders early. IMHO one may spend time watching and learning about any market (RE, stocks, bonds) and beat the averages–again, this is usually over long periods of time.
I think the fundamental reason the stock market (broad index funds) should beat the broad RE market over time is that selling/buying (as opposed to developing) existing RE is typically zero sum. Wealth is transferred in the transaction, not truly created. Microsoft (love em or don’t) has helped make businesses more productive, and has helped to create entirely new industries. Overspeculation aside, which happens in stocks as well as RE, a share in Microsoft is worth more now than when first issued because the company has created value.
-one muggle
