Investing in the Stock Market vs. Real Estate Market

The stock market and the real estate market are two of the most common, if not the most common places to invest your money. All markets have their ups and downs. With proper research, each market can be profitable. Most investors fail to hire a stock fraud attorney to ensure that their transactions are valid.

The Stock Market Today

On July 20, 2015 the S&P 500 Index was at its maximum value in history at 2128.28. In 2007-2008, this number was around 1500. The economy is cyclic in nature which means that every time a “bull” market comes, investors and brokers know that a bear market is right around the corner. This happened in the 2007-2008 repression and in 2000 when the dot com bubble crashed. Other important points that signal a possible drop in the stock market in the near future include the recent fall of the Dow Jones Index by more than 1,000 points – an event that hadn’t taken place since the 2007-2008 crisis. There are many opportunities to invest in the bear or bull market depending on your strategy.


The Real Estate Market Today

In general, the U.S. real estate market has seen an overall price increase. In the case of San Diego, the market has rebounded from its low point in 2012 to reach similar heights to the ones it had before the real estate market bubble crashed a few years ago. The following graph shows the real estate situation in San Diego in recent years.


Which Market is Better

It is better to invest in the market that fits your budget and background. It is far easier to invest in the stock market than real estate market. Many investors have made money in both a down and up stock market. Investors can take a financial advantage from a market crash by strategizing with a short sell. Short selling is very easy to understand. It means that you sell a stock or an asset that you currently do not possess and later on you buy it – for a lower price. That being said, you sell something at a high price and you sell it a low-price profiting from the price difference. It is important to consult a stock fraud attorney when attempting this as they will be able to make sure that you are protected from any fraudulent activity.


Protecting Your Finances

It is advisable to consult an experienced stock fraud attorney every time you invest in the stock market. Having the help of a stock fraud attorney at your disposal will ensure that this type of investing will not cut into your profits. Many brokers have been found guilty of excessive trading. This usually results in less gains for investors given the fact that commissions from each trade get debited from their accounts. This practice is illegal and a stock fraud attorney can help you protect your rights in this and many other aspects. Investment fraud can take many forms such as unauthorized trading or the breach of fiduciary duty among others. A stock fraud attorney will guide you so you will not become a victim from these unwanted events.