Earlier this year the Dow Jones Industrial Average (DJIA) turned 120 years old, and few indices can claim to go back as far as this gauge of equity market performance except for the house-price index of Robert Shiller (he developed the index much more recently but calculated its value going back to the late 1800s). CoreLogic staffer Frank Nothaft takes a look at the way that both indices have changed over the DJIA's 120-year life time.
Nothaft notes that equities and home values largely moved together, with the exception of the 1920s, and equities were only slightly greater through the early 1980s. However equities have soared since that time in comparison:
While the valuation gain on equities (rather, on the firms that comprise the DJIA) has exceeded the price gain on houses, equities also have more risk. A general principle is that investments that have more risk should also compensate the investor for holding that risk.