The following is just my opinion, and is not meant to be construed as investment advice !
I must say after watching the stock market tumble over the last week, that I feel pretty good about not being invested in it. Long ago I took control of my own financial well being by investing in tangible assets that I pick and manage.
Investing in the stock market is like gambling to me. You are vulnerable to China’s currency repricing. You are vulnerable to terrorist attacks in the Middle East. To the price of oil, and so many other things. The world is so inter-connected and operating in real time that the panic sets in and a massive sell off happens.
I’d like to contrast that to my real estate investments. Let’s see –
I have a minimum of a 1 year lease on every property (so fluctuations of the market have no bearing on me except once a year).
I own a tangible asset that I have been to and can touch (can you touch your shares of stock?).
I am the owner and in charge of making decisions (how much do you control the funds and companies you invest in?).
I get to leverage my investments and often put very little down (do you get to borrow money for your stock investments at 4%?).
I get insane tax benefits from owning real estate (are there any tax advantages to stock besides long term capital gains rate and dividends rate?)
To me the answer is clear. I am all about controlling my own destiny, not putting it into the hands of the corporate crooks on Wall St to do what they will with it. I choose not to let China, the Middle East and other drama affect my returns.
If you are fed up with the stock market, take control of your own destiny with Ryan Schroder :