My conclusion of listeing each most important aspects why (not) to invest in each:
\- S&P 500:
Pros: fully passive, highly liquid, instant diversification, historical \~10% compound annual growth
Cons: High market volatility
\- Real estate
Pros: leverage from bank debt, predictable monthly cash flow, physical asset
Cons: Illiquid, high entry costs, cost of maintenance, exhausting tenant management hassle
What do you think is the better asset class and do you have any aspects to add why (not) to invest in each?