Stocks and residential real estate as investment options in Finland
Tikkanen, Jaakko (2018)
Tikkanen, Jaakko
Metropolia Ammattikorkeakoulu
2018
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201805239831
https://urn.fi/URN:NBN:fi:amk-201805239831
Tiivistelmä
This study focuses on two asset classes, residential real estate and stocks, and their roles as investment options in Finland. The purpose of this study is to observe and analyse the fundamental characteristics of both asset classes.
Residential real estate and stocks have historically not differed in terms of return as was discussed by Shiller in his book Irrational Exuberance in 2015. It is therefore useful to study the potential and obligations brought on by purchasing these asset types alone and simultaneously. By doing this, an investor can consider factors and scenarios that are not necessarily apparent at first glance and manage their risk better.
I have approached this topic with the help of relevant literature pertaining to both stocks and residential real estate. This data was complemented with graphs of historical price developments and statements on what they could mean in the future.
In this study I wanted to answer whether it is a good decision to invest in both stocks and residential real estate simultaneously. My hypothesis was, yes, it is a good decision, as these assets produce returns differently. I attempted to challenge this hypothesis by searching for evidence that would prove otherwise. I found differing opinions on the future of correlation between the asset classes but eventually discovered no evidence that would fully support a negative answer. It is therefore a good decision to invest in both stocks and residential real estate simultaneously.
Residential real estate and stocks have historically not differed in terms of return as was discussed by Shiller in his book Irrational Exuberance in 2015. It is therefore useful to study the potential and obligations brought on by purchasing these asset types alone and simultaneously. By doing this, an investor can consider factors and scenarios that are not necessarily apparent at first glance and manage their risk better.
I have approached this topic with the help of relevant literature pertaining to both stocks and residential real estate. This data was complemented with graphs of historical price developments and statements on what they could mean in the future.
In this study I wanted to answer whether it is a good decision to invest in both stocks and residential real estate simultaneously. My hypothesis was, yes, it is a good decision, as these assets produce returns differently. I attempted to challenge this hypothesis by searching for evidence that would prove otherwise. I found differing opinions on the future of correlation between the asset classes but eventually discovered no evidence that would fully support a negative answer. It is therefore a good decision to invest in both stocks and residential real estate simultaneously.