Long term, the US stock market and real estate markets have two very different paths which could be travelled down depending on the state of the money supply. One path is deflation, the other is inflation.

Here is the dilema — Japan’s housing market peaked around 1990 and has been riding straight down ever since. In that same time frame their money supply almost doubled!

Of course there is an explanation to this. The question is, will it really be safe to rely on inflation for long term investment appreciation?