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Subject:  Re: OT: KISS Date:  8/10/2002  7:18 PM
Author:  sykeMOL Number:  73424 of 882490

There have been very long (>10 year) periods when stocks have returned zilch. I am not aware of even two consecutive years when the average U.S home resale price has declined. The risk is obviously less and the role that luck plays is minimized.

No one invests in the "average US home resale" price. You invest in real estate in a specific location. Ask people in Houston how long it took for housing prices to recover after the oil bust. It took a decade or more just to reach break even point, at a CAGR of about 1% over the last 20 years.

Note: Not anti-real estate. I'm actively shopping myself at the moment. But there are risks involved. It may be a long, long time from now until the break even point if I'm forced to sell. So I want to arrange my affairs such that that doesn't happen.

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