Return on Investment Comparison January 2000 – December 2008

Dow Jones – 19.8%
S & P – 35.2%
Nasdaq – 59.9%
Real Estate + 69.8%
Source: MSN Case Shiller

For example, had you invested $100 across a
broad index of the Dow, S&P, or Nasdaq securities;
versus applying the same amount toward a real
estate purchase back in 2000, your long-term
investment would now be worth…
$80.20 in the Dow
$64.80 in the S&P
$40.10 in the Nasdaq
$169.80 in real estate

In today’s climate of fear and uncertainty, people
fail to remember that even adjusting for its
cyclical ups and downs — and the occasional
bubble and burst — real estate remains among
the most profitable long-term investments.

Median home prices have fallen dramatically over
the past year, pushing affordability to its highest
peak in nearly 40 years! (Source: NAR projection
based on 5.2% mortgage interest rate)
When prices begin to rise again, affordability will
naturally decline.

Warren Buffett is never too tight-lipped to reveal the
secret to his phenomenal success:
“Be fearful when others are greedy,
and greedy when others are fearful.”