The Haves vs. The Have Nots – Speculating on Stocks vs. Investing in Real Estate

When you’re buying paper assets and you’re hoping they go up in value… you’re gambling. And I’ll tell you, the odds are not very good right now… because it’s very obvious from the unemployment, the layoffs, the business failures, that GDP is going down.

The stock market is a derivative of GDP. It is the economy’s way of saying what they believe our business are worth in this country… and right now, they’re saying they don’t see the value. If they don’t see the value now, what are they going to see when unemployment is at 10%, not 7? Yes, they’re predicting 10% unemployment and right now we’re at 7%. It’s going to get worse before it gets better.

Comments

  1. It also depends upon how you define unemployment. If you define unemployment as people who are now working part time because they can’t find full time work, I’ve heard the unemployment figures may be in the higher double digits, ~16%.

    Mark Cuban has an entertaining article about the stock market that I thought people might want to read:
    http://blogmaverick.com/2006/01/03/the-stock-market-is-for-suckers/

    Cuban doesn’t share the exact sentiment shown at Lifestyles, but he also has the privilege of being able to call the CEO to ask about a company before he buys any of their stock.

  2. Alfonso says:

    In a comment I left on another article, I said that if you have $100 Million to play around with, then the stock market may be a good fit for you…as it is for Mark Cuban. Of course he doesn’t have the same sentiment as Lifestyles has toward the stock market, he has millions of dollars. For the average investor the stock market is a losing proposition.

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