Well sso leverage is far lower. Real estate leverage is about 5x while sso is about 2x. And this doesn’t even factor the embedded leverage within The individual stocks. With that said I still think real estate with 5x leverage prolly still has lower standard deviation.
Read this report. It blew my mind. Talks about the return of everything. TLDR real estate returns unlevered with rent Included is equivalent to the stock market at half the standard deviation.
Next you’ll be telling us private equity has better risk adjusted returns due to the lower volatility. And did you look at the American returns. Didn’t know you buying real estate in Switzerland post 1980 your houses get crushed with way higher risk of ruin. Analysis fail!
Volatility is a fair point. But they also compared dividend yields and rental yields and found rental yields more stable. That’s not a mark to market issue. Also keep in mind this is purely unlevered analysis. We all know first hand that when leverage is applied. Real estate is far greater.
The equity is unlevered too and we care about total returns… I declare victory over Nerdy
Can’t say I agree with nerdy. I have the ability to invest almost a million bucks right now into S&P using only 65k. Name One mortgage lender who would give me that much right now with my income (pre bsd status that is).
If you piggy back any investor you’re better off playing russian roulette! Why so serious fellas?! I thought the sso was a good’ol money maker
How many times does Mr.Market have to slap you silly before you understand? I thought your Q2/2020 was enough
You know I’m buying the market right? Not selling it?
So? Your downside is capped (hopefully) but you’re still the sitting duckling.
no equities have leverage built in via corporate debt.
Why you acting like I’m keeping my portfolio ten times levered over the weekend? I have one mini open. That’s not even three times leveraged.
If the S&P500 falls 50 points though, I’ll probably buy more. The market has been dipping 1% here and there and then roaring back… all summer long.