>buying Real Estate... But it should return well over time...
Lol. You do realize that the avg real estate price is up ~6x since 1975, while the S&P is up ~21x, right...? And before you talk about capital gains tax advantages, look into the absurd subsidies we provide to mortgages. Interest is a write-off, and if you're at all smart about it the appreciation in the property is close to tax-free (except at the extreme high end, but that's not where the gains are).
Now, on to your main point. There's a ton of liquidity (aside: just because there's a lot, is that inherently too much?) in a very specific sector of the market: fintech esp, and the tech sector in general. There is remarkably tight control on other areas of the market (go look at biotech, for instance). The actual problem is that tech startups are the lottery of investment. The ability to hit on one unicorn and make the GDP of a third world country in one year is pretty enticing. Because of this fact, investment in less-sexy sectors of the market is being depressed in favor of lottery tickets. Your proposal addresses this not at all.
Lol. You do realize that the avg real estate price is up ~6x since 1975, while the S&P is up ~21x, right...? And before you talk about capital gains tax advantages, look into the absurd subsidies we provide to mortgages. Interest is a write-off, and if you're at all smart about it the appreciation in the property is close to tax-free (except at the extreme high end, but that's not where the gains are).
Now, on to your main point. There's a ton of liquidity (aside: just because there's a lot, is that inherently too much?) in a very specific sector of the market: fintech esp, and the tech sector in general. There is remarkably tight control on other areas of the market (go look at biotech, for instance). The actual problem is that tech startups are the lottery of investment. The ability to hit on one unicorn and make the GDP of a third world country in one year is pretty enticing. Because of this fact, investment in less-sexy sectors of the market is being depressed in favor of lottery tickets. Your proposal addresses this not at all.