[squiffy]

Good post re: real estate vs. stock price studies.

But if the economy is strong and people are earning lots of money and are employed, they should invest. And traditionally they have invested in stocks and real estate.

Since interest rates are low and tax laws favor purchasing real estate, and since we just saw a stock market bubble burst, it makes psychological and economic sense that people would put money in real estate.

But this won't always hold true. It really depends on many different factors.

I am sure the creation and popularization of 401Ks gave a huge boost to the stock market as it became easier for Americans to invest in mutual funds and save for retirement.