Re: Correlation between real estate and stock market
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Hi eastbay,
There are MANY more options for investments other than the stock market or Real Estate.
FOREX (foreign exchange), for example, is the largest market in the world.
Futures, Commodities, Gold, Bonds, Art, Diamonds, Coins, Private Businesses, collectables, etc are all other examples.
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Of course. You can also bury your money in Pringles cans in the back yard. But I think the point remains.
I think by "largest market" you mean most trading volume. That isn't particularly relevant. The question is: is there a dominant flow between stocks and real estate. You can have people trading trillions in forex daily and it's irrelevant if it isn't diverting money that would otherwise be earmarked for real estate or stock market.
By the way, I found that the answer is a resounding "yes" for the past 20 years.
eastbay
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