You're Probably Underweight Real-Estate

Evidence from Doeswijk portfolios

Despite the catastrophe wrought by the dealers in the mid-2000s, real estate returns (as proxied by the etf, VNQ) have averaged 5.0% per annum at a compounded rate in the 15 years since April 2007. (All numbers are as of the closing prices on June 21, 2022. Expected returns are compounded or geometric rates of return.) Over the same period, stocks (VTI)…