[JKCalhoun]

Depends on how much the real estate market is being fueled by the Stock Market. We've seen a bull market now for the last, what, 13 years? Is this continual wealth driving all the other prices upward?

As we saw in 2008/2009, financial markets are linked more so than they tell you. Diversifying your portfolio is a good idea, but having both real estate and stock investments is probably not in fact diversifying.

[naveen99]

Include labor and leverage in your thinking on diversification as orthogonal dimensions to asset class. Even rich people can bring their own labor out of reserve when there assets are losing value. When assets appreciate, they can rebalance towards leisure.