A similar folly can be seen with the way some people view real estate, which has many investment subcategories. Studies have shown that while residential realty values are immediately sensitive to interest rates and to recessions and booms, commercial real estate is less sensitive because of long-term leases. Experts agree, though, because of statistical studies, that real estate should be in nearly everyone’s portfolio because value changes are not perfectly in sync with either growth stocks or several bond categories. It helps with diversification and will be recommended by the models I urge you to use. Fortunately for small but growing investors, real estate can be purchased in the form of mutual funds, albeit less liquid funds than stock or bond funds. Many people manage their own real estate physically. Managing one’s own real estate is extremely demanding and has risks, from potentially violent tenants to zoning changes….