RS> Its a complex argument. You can NOW make a case that with the new
RS> regime of very low inflation rates again, the old idea that real
RS> estate is always the best, particularly owner occupied housing, isnt
RS> anywhere near as true as it once was. One of the fundamentals of the
RS> financial scene is that the stock market generally looks best in a low
RS> inflation environment, But you have to remember that the stock market
RS> is considerably higher risk. Particularly owner occupied housing never
RS> has the same downside risk that the stock market does. Downside risk
RS> means risk of it dropping.

AM> IOW, higher risk shares would probably be the closest you'd get?

RS> Dont understand the question. Are you asking if they are likely to be
RS> the highest rate of return ?

AM> Yes.

No, there are higher risk, higher return possibilitys. Futures trading
for example is much higher return if done successfully. But then its a
hell of a lot higher risk too.

And there are no simple classifications of investment areas either, its
really not possible to quantify the relativitys between risk and return,
particularly with high risk stuff.

For example with the highest risk shares, you can get returns you wont see
anywhere else. Just look at the phenomenal returns which were seen on the
highest flyers which fell flat on their face in stock market crash. If you
manage to buy in dirt cheap, and sell out at the top, you wont see that
sort of return anywhere else. But then its very difficult to do that too.
Very dramatic with some of the speculative mining stocks too.

RS> True. OTOH directly investing in shares yourself isnt for the faint
RS> hearted, you need to know what you are doing rather more than with
RS> some other approaches.

AM> But _if_ you do it right, the returns are bound to be higher, from
AM> what I've read into your stuff deleted below.

True. OTOH you can make a hell of a lot of money out of property if you
know what you are doing with direct property investment too. In fact if
you look at the very rich people, more have done it with property than who
have with share trading. Depends on how you count share trading tho, Kerry
Packer is the classic example of someone who got absolutely filthy rich by
share trading effectively. But then, as he said 'you only get one Alan
Bond in your life' and you need just a tad more than $10K pa class money
to play in that game.

AM> Maybe I should become a professional gambler...

That is actually one where you dont get that good returns without some
inside knowledge etc in general.

--- PQWK202