Stock market is starting to rise little but is very volatile

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Consider the idea that home prices have fallen and the stock market is starting to rise a little but is very volatile. Assume that you have $25,000 to put down on a $200,000 home which means you will have a mortgage payment of $175,000 without insurances or taxes for 15 years. Given the economic conditions described, what would you rather do: (a) put the $25,000 toward a house and knowing that you could lose home value at first but eventually it will rise, or (b) put the $25,000 in the stock market knowing that the market is volatile but if the economy rebounds you could make a lot of money? Provide a rationale for your decision.

Reference no: EM131448372

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