At the Commercial Investing Center, we spend a lot of time warning investors that the stock market isn’t what it used to be. In the old days, before it was driven by wild-eyed speculation and companies not worth a red cent in the real world, Wall Street was an “okay” place to park your extra cash and generate a measurable positive return through dividends and appreciation. Those days are long gone. Wall Street is an insider’s game now and those foolish enough to do so are playing at a casino with the worst odds in town.
Our fear is that so many people continue in their perverse relationship with the stock market’s underperforming assets for the simple reason they have no idea about what else they should do. It’s hard to blame them. The financial media has been entirely co-opted by Wall Street advertising and promotion. Were one to glean all their financial information via traditional channels (newspaper, radio, cable television), the inescapable conclusion would be that stocks, bonds, mutual funds, and the occasional bit of gold were the only investment options available.
But the few, the proud, the smart investors, realize that the current humming along on the best fundamentals around, like real value and cash flow, is the real estate market. In particular, we’d like to suggest you focus on income property investing, either residential or commercial. It’s actually a more conservative, yet more profitable approach to increasing your wealth. And the best news of all is that the nature of real estate investing makes it practically impervious to outside manipulation.
Simply put, fundamentals used to drive Wall Street. They don’t any more. To tap into the old-fashioned profit model that previously characterized the stock market requires that you make the leap across the street to real estate, which is the asset best able to deliver real value back into your portfolio. While Wall Street can manufacture a company into existence, and it might even be worth something on paper, there’s nothing quite as firm as the ground under your feet. Put an apartment building on it, mix in a foreclosure crisis, and you’ve got the kind of demand that comes along once in a lifetime.
He who hesitates can watch their stock portfolio limp off into the sunset, dying the death of a thousand cuts from transaction and administrative fees.
The Commercial Investing Center Team
Flickr / dflorian 1980