Investors often regard real estate as a safe long-term store of value. The 2008 financial crisis, in which housing prices in many regions collapsed and remained depressed for years, complicated this assumption. Today, financial advisors typically recommend diversifying real estate holdings across geographies and property types rather than relying on any single market.
Which choice best describes the function of the second sentence in the text?
- A
It supports the assumption introduced in the first sentence.
- Bcheck_circle
It introduces a historical event that destabilizes the assumption and motivates the third sentence.
- C
It defines the term 'real estate'.
- D
It introduces an unrelated investment instrument.
Explanation
The 2008 collapse undermines the safety assumption and prepares the diversification advice in sentence three. B captures this transitional function.