It was a difficult year for the S&P500 index, which is generally considered a measure of the performance of the stock market as a whole. As of this writing, the S&P 500 is down about 19% year-to-date, but the index has also dipped several times into bearish territory this year, pointing to a 20% drop. or more.

Now, the reality is that this isn’t the first time the market has had a tough time. And historically, investors who have loaded their portfolios with S&P 500 index funds have done quite well over the long term, even with years of poor performance.

But if the idea of ​​putting more of your money into the S&P 500 doesn’t seem like an attractive option right now, it might be time to consider investing in real estate. Not only is it a great way to diversify, but you could also enjoy your share of the profits by investing outside of the stock market.

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A solid alternative

Stocks have long been a good bet for investors with a long-term wealth-building strategy. But right now, stocks are in a serious doldrums, so it’s best to look into real estate instead.

Indeed, many people have seen their portfolios lose value since the start of the year. But the owners saw the opposite. Property values ​​are up right now in all areas. And in May, home selling prices rose nearly 15% from a year earlier, according to the National Association of Realtors. So if you’re able to find an affordable rental property, you could be setting yourself up to enjoy a steady stream of income.

Right now, rental demand is high because homes have become so hard to afford. We can thank a combination of sky-high prices and rising mortgage rates for that. So if you are able to land a rental, chances are you can command a good amount of rent for it. And if you keep your rental for many years, there is a good chance that the value of this property will increase over time.

You can also consider buying a messy property and flipping it for a profit. The real estate market is currently seriously short of housing inventory, so if you’re able to afford renovations, you could manage to turn a nice profit with a quick fix and a turnaround.

Don’t limit yourself to stocks alone – especially now

There is no reason to assume that the S&P 500 is doomed. He’s going through a tough time right now, and while it might be for a while, it shouldn’t be a cause for panic. But if you want to stay away from the big stock market right now, it pays to consider real estate as a viable investment alternative, whether it’s buying a rental property and becoming a homeowner or to buy a repairer, to rehabilitate him. , and market it to a willing buyer.