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In this July 3, 2014 photo, a construction worker builds housing for students near Drexel University in Philadelphia.
In this July 3, 2014 photo, a construction worker builds housing for students near Drexel University in Philadelphia.
(Matt Rourke/AP)

Real estate or stocks? Inflation holds the key

Portfolio manager, analyst and author Mebane Faber recently made a statement that is sure to strike fear into the hearts of Canadian homeowners. “The biggest surprise to individual investors I chat with is that historically, and broadly, after inflation, housing appreciation is zero.”

How can this be? Canadian gross domestic product growth has been tepid in recent years while low interest rates sent home prices skyrocketing.