Putting money into real estate and stocks are two popular ways to grow your wealth. Home values have risen significantly, especially with demand being hot in the past few years. A red-hot housing market has inflated values across the globe. And while things have cooled of late, prices are still much higher than they were just a few years ago.

Investing in stocks, however, is also a traditionally safe investment option. The S&P 500, for instance, has averaged an annual long-run return of 10%. Through the power of compounding, those gains can add up significantly over time. After 10 years, a 10% compound annual return would mean your investment is up to more than 2.5 times its original value. After 20 years, it would swell to 6.7 times its original value.

But which of these investment options is better for the long haul: real estate or stocks? Here’s what the data says.

Image source: Getty Images.

The stock market has been the winner, and it’s not even close

According to data going back to the start of 1995, the Case-Shiller Home Price Index, which tracks housing prices, has risen by more than 310%. By comparison, the S&P 500 index has increased by more than 1,200%. And when you include reinvested dividends, the total returns are more than 2,200%.

S&P 500 vs the housing market data by YCharts

Different housing markets, will, of course, experience different returns. But when taking a broad look at the two investments, it’s evident that the stock market as a whole is generally the better long-term investment than real estate.

Profits on real estate can look incredible, and that’s because to buy a home you’re investing hundreds of thousands of dollars into it. In some markets, you might not be able to even buy a home for less than $1 million. With so much invested into an asset, the profits can be significant, whereas with stocks, investments are typically smaller.

But if, for example, you invested $500,000 into the S&P 500 and it simply rose at its long-run average of 10% for five years, then you’d be sitting on a profit of more than $300,000. If you invested $1 million, then the profit would be more than $600,000. Now these kinds of profits start to become more eye-catching, and that’s because the original investment is so significant.

Why investing in stocks can make more sense than investing in real estate

The large numbers from real estate profits can make it seem as though investing in housing can yield better returns. But when you adjust for the size of the investment and you strictly look at the percentage return, the story looks much different, and it makes it more evident that investing in stocks may be the better option.

But there are also other factors that tip the scale in favor of stocks, including liquidity. With stocks, it can be easy to get in and get out of an investment while incurring minimal costs. Investing in real estate, however, can be both time-consuming and costly. Plus, you are tying up money into a single asset whereas with stocks you can diversify across multiple companies or through 500 of the leading stocks as with the S&P 500 index.

Investing in the stock market has yielded better returns over the years and it’s a safer long-term strategy. Even if you’re not sure what to invest in, tracking the S&P 500 through an exchange-traded fund can be an easy way to invest in the stock market while taking on minimal risk.

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The broader market is in decline, and like many top cryptocurrencies, Dogecoin (DOGE) faces bearish pressure with volatile price movements. Given its currently weak position, many have considered selling off their bags. With this in mind, a crypto analyst has outlined his sell-off strategy, highlighting key Fibonacci levels that could serve as optimal exit points. 

Dogecoin Sell Strategy: Fibonacci Levels To Watch

In a recent X (formerly Twitter) post, crypto analyst the Charting Guy discussed his strategy for selling Dogecoin based on Fibonacci extension and retracement levels and overall market trends. The analyst declared that if the Dogecoin price rises to the 0.702 or 0.786 Fibonacci level over the next few months and fails to break above it, he would sell off the majority of his DOGE holdings. This selling strategy aims to mitigate potential losses and attain as much profit as possible, even with the market’s weakness.

The Charting guy disclosed that his thesis for the future Dogecoin price action suggests that a bottom may be forming, followed by a potential market peak by late April or early May. He announced that he planned to sell his bags close to this price peak, expecting a severe breakdown to new lows in March 2025. 

Sharing a Dogecoin price chart on a weekly time frame, the Charting guy draws several Fibonacci retracement and extension levels from a key high and low. The 0.702 Fib level at $0.43 is acting as a potential resistance zone for Dogecoin. 

If the meme coin can claim and break through this resistance level, the crypto analyst predicts that it could regain its former bullish momentum and aim for higher Fibonacci levels. This could lead to a gradual climb past key Fib levels: 0.618 ($0.26), 0.786 ($0.42), 0.888 ($0.55), 1 ($0.76), 1.272 ($1.60), 1.414 ($2.36), and ultimately 1.618 ($4.1), the highest bullish target.

On the flip side, if Dogecoin fails to break this level and gets rejected, it would confirm a broader market weakness and possibly lead to a deeper price correction to lower Fibonacci support levels of 0.382 ($0.139), 0.236 ($0.09), 0.136 ($0.07), and 0 ($0.0491). 

Before then, the Charting guy stated that he would sell his bags rather than hold out for a rise to $1. He plans to exit the market between $0.32 and $0.42, prioritizing profit taking over unnecessary risks. 

Golden Pocket Weakens DOGE’s Bullish Outlook

While the Charting Guy projects a bullish and bearish outlook for Dogecoin, the crypto analyst also highlights that the popular meme coin has weakened, reinforcing the possibility of a more negative price action. He disclosed that Dogecoin lost its Golden Pocket around the 0.618 ($0.267)—0.65 Fib ($0.30) levels. 

This Golden Pocket loss had weakened DOGE’s position, making it riskier to hold long-term and invalidating the analyst’s bullish charts.

Featured image from Unsplash, chart from Tradingview.com

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