Quote:
Originally Posted by sweeps
Even if the perceived value of real estate drops to 0, you still have something left over. Land, building materials, etc.
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That is true that your real estate investment will never zero out, so in that sense there is less risk. However, a total stock index fund is probably not going to zero out either. Single companies can go bankrupt and be mismanaged and be worth nothing, but diversified portfolios are not just going to be worth nothing one day.