Application of Gray-Situation Decision to the Investment of Real Estate and Stock

Putting investment in real estate or in stock? It is a hard decision for the investors to make. So based on the data from the year 1998 to 2007, this article sets up a gray-situation decision model, which shows that in the past 10 years the strategy of investing in real estate is the best, better than investing in stock and than investing in both simultaneously. This article believes that it is not only related to the prosperity of the real estate market for the past 10 years but also to the stock market which can not entitle the investors to gain ¿ durable income¿. In China, it is the alternative effect and squeezable effect rather than the wealth effect that exist between the real estate market and the stock market.