Brendon Thorne | Bloomberg | Getty pictures
Some Americans believe that real estate and gold are the best long -term investments. Consultant believe that this is wrong.
According to a new report by Gallup, a global analytical and consulting company, around 37% of the US -grown -ups surveyed consider the best investment. This number is approximately unchanged of 36% last year.
Gold was the second most common choice with 23% of those surveyed. That is five points higher than last year.
In order to compare: Only 16% trust their trust in stocks or investment funds as the best long-term investment-a decline in six percentage points compared to the 2024 report, Gallup.
The company interviewed 1,006 adults in early April.
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Financial advisors warn that this preference is probably more about Buzz than fundamental data. Be careful when you have got involved in the hype, said the certified financial planner Lee Baker, the founder, owner and president of Claris Financial Advisors in Atlanta.
Carolyn McClanahan, CFP and founder of life planning partners in Jacksonville, Florida, agreed: “People always hunt what is hot, and that's the stupidest thing they could do.”
Investors have to know the following about gold and real estate and how to include them in their portfolio.
Why gold and real estate are seductive
Baker understands why people like the idea of ​​real estate and gold: both are specific objects against stocks.
“You buy a house, you can see it, feel, touch. Your investment in shares may not feel real,” said Baker, member of the CNBC financial advisory board.
While the preference for gold is increasing this year, the proportion of Gallup-said who believes that it is the best long-term investment.
The gold prices tended up this spring. Spot gold prices reached an all -time high of over $ 3,500 per ounce at the end of April. A year ago, prices were around 2,200 to 2,300 US dollars per ounce.
Real estate has also sparked more interest in high demand from buyers and accelerating prices in recent years. According to the bank rate, the average sales price for an existing house in the United States in March was $ 403,700. This is after the record high of 426,900 US dollars in June.
Why stocks are the better bet
While real estate and gold are two assets that appreciate the value over time, the stock market will generally grow much higher, say experts.
The annualized overall return of S&P 500 shares is 10.29% over the 30-year period in April per Morningstar direct data. During the same period, the annualized overall return for real estate is 8.78% and for gold 7.38%.
McClanahan also points out that in contrast to gold and real estate, shares are a diversified assets, which means that they are spreading their money instead of concentrating in an investment.
“When you talk about stocks, don't talk about a big good,” she said. “You talk about thousands and thousands of companies that do different things.” McClanahan is also a member of the CNBC Fa council.
While the tangibility of gold and real estate can give a feeling of comfort, it also makes it illiquid or difficult, said McClanahan.
How to include gold, real estate in your portfolio
If you are among the Americans who are exposed to real estate or gold, there are various ways to do so carefully, explain experts.
For real estate, financial advisors say that investors in the real estate investment, also known as already known, examined or take investments into account that bundle real estate shares such as stock exchange funds.
A riding is a listed company that invests in different types of income-producing living or commercial properties such as apartments or office buildings.
In many cases, you can buy stocks of listed riding on how to buy a stock or stock of a riding investment fund or a fund traded by Exchange. Riding investors usually earn money with dividend payments.
Real estate investment funds and change hold funds will usually invest in several riding and in the real estate market. It is even more diversified than investing in a single riding.
In both cases, they are exposed to real estate without concentrating on a single property, and it will help to diversify their portfolio, said McClanahan.
Similar to gold – instead of dealing with gold boundaries, you should invest in gold in gold through ETFs.
In this way, avoid finding a place where you can keep or hide physical gold. They wash the stress that is stolen, or make sure that it is covered by your house insurance policy, say experts.
“With the ETF you actually get the value of the gold return, but you don't really have it,” said McClanahan.