 Good day, fellow investors. In this video, I'll explain in detail why I expect a return of at least 10 and going to 15-20% from stocks. And I'll compare stocks to real estate in order to see which asset class offers the best risk return puzzle. Because it's all about risk return. As an investor, I don't care which the asset class is. If real estate are cheap, I would invest in real estate. Even Warren Buffett invested in real estate when those were cheap. I'll make a special video about that. So don't be constrained by asset classes. Think about risk reward. And now let's go into the comparison of stocks and real estate. The current, psychologically adjusted price earnings ratio, CAPE ratio for stocks is around 30. This means that the expected return over the long term will be 3% from stocks. With some growth, that return can grow to 4-5% in the long term. But that's it. What is the risk? Well, whenever the CAPE was so high in history, next 10 year returns were negative for stocks. So you can expect that the risk for investing in stocks now is 50, 60, even 70%. For a meager 4% return, I don't like those odds. So if I invest in stocks, I really want higher odds. I want 20% return, at least, and lower than 70% risk. Difficult to find but possible. And now let's see about real estate. And why am I so strongly saying that if you invest in stock, you should expect only at least 10%. Don't invest in stocks if you don't get 10%. Now let's first start with real estate. If you look a bit around where you live, I'm sure you can find low risk real estate investments that the rent yield is 4%, even 5%. If you are good, if you know what to look, you can push it to 6% if you are, of course, a professional. So 4%, 5%, 6%, stocks 4%, 5%, 6% in the long term. So the expected return, what you get from investing in stocks or real estate is equal. What's the risk? If we take a look at the Schiller real estate index, we can see that real estate prices can also fall like stocks, but that the fall was much lower in the exponential crisis than stocks. So in general, I think we all agree that real estate has a lower risk than stocks, especially in the long term. Now I said real estate can give 4%, 5%, but I said I need 10% from stocks. That's a huge difference. Well, if I add leverage to real estate, my returns can quickly come to 10%. As real estate are less risky than stocks, you can go to a bank and with a 20% down payment, 30% in the Netherlands where I live, you can buy a real estate and investment property to rent out. And the mortgage rates by loan product are very low. 3.6% 30 year fixed rate. In the Netherlands, it's 4%, 4.5%, but still below 5%. And if you can invest in an apartment with a rental yield of 5%, 6%, and you can pay a mortgage rate of 4%, then you immediately make profit and increase your returns. I have here made a small table. Let's say I invest 50,000 as a down payment, including costs, the purchase price is a quarter of a million, the loan is 200,000, interest rate is 4%, that's the monthly payment, $955. And I pay off my mortgage after 30 years, so I don't make any profit. So what I get from my tenants, I pay my mortgage. And so for 30 years, no profit, the total return on investment is 400%, and the yearly return of investment is 5.5%. On my initial investment of 50,000. So this is without any profit. Imagine that you make a small profit of 2%. After paying all the costs, there is $100 that remains, that adds 2.4% per year to your return, because $1200 is 2.4% on the 50,000 you invested. So that's, we are already at 7. something percent. Now, in my example, real estate prices didn't grow in the next 40 years. Will that happen? That's very unlikely. So if that real estate you buy now with a fixed mortgage interest rate, let's say doubles over the next 40 years, then your return is already 8%. With the small gain from the difference in costs and tenant yield, you're already at 10.4%. So I think that with a bit of effort, you can really find such deals in real estate. It's a great diversification play, especially now when you can get a fixed mortgage at such low interest yields, 30 years. So really think about diversifying into real estate and really allocating in different asset classes risk reward, always risk reward. So if real estate can easily yield 10%, then I mean, I need more from stocks. If not, just put your money into real estate at this moment, leverage it properly, buy a good piece of real estate and hasta la vista. However, it's not that easy. Real estate, sometimes you don't get paid. Your tenants go, something gets broken, maintenance costs and all those kind of things. So it's a management intensive job. However, there are different investments. If you apply a good amount of time, I think you can really find good deals. I bought my first piece of real estate one and a half years ago, but before that, me and my wife went to see about 20 properties a week for a few months, and I was online every day. I knew every color of every wall in every house, 40 kilometer radius from where I wanted to buy. So the more research you do, the more things you see, and then you can really find good deals. And that yield, the 5% can become 6%, 7% in respect to a 4% mortgage. And then we are already talking much higher than 10% yields. So really, when you compare real estate and stocks, I think stocks are overvalued now, of course, except for the stocks that we recommend on this channel. Thank you for watching, subscribe if you like the content, and if you haven't subscribed yet, I'm looking forward to your comments and I'll see you in the next video. I'm looking forward to your comments and I'll see you in the next video.