I was watching TV the other day, and Geraldo had Mort Zuccerman and Mark Cuban in the studio. They were talking about economy, and I was surprised by what Mark Cuban said.
It was about the economy and something about the notion that if you have stocks, you have to weather bad times and they would come back. Mark was asked what his advice would be for people out there. He suggested that they sell the stocks and put money in CDs at 3.5% and be happy. He insisted that it did not matter whether you lose, and whether you lose a lot. Then came the interesting part:
Mark Cuban said that on September 1, 1966 the market was at 761 points mark. 15 years later it was the same 761. I missed what those points represented, whether it was Dow or something else, but it is irrelevant. What important is that time does not guarantee that the value of the stocks go up.
It did not seem that Mort Zuccerman was thrilled with CDs at 3.5% but he also was for selling the stocks. Wow, I thought that patience with stocks is a requirement and is a virtue. Well, maybe not so.
As we all know, the value of real estate in the years after the WWII was going up on average 6% a year, and the values doubled every 10 years. Yes, there were ups and downs, rises and falls, but it all leveled and here we are: 60-year proof of performance. Not bad. Not bad at all. And heck better than 3.5% on CDs. Mark will not call me, he has enough money and the ways to make more. But if you are listening to his advice, you better call me. There is way more money to make than just 3.5%. Unless, of course, you have a few billions, and then 3.5% is still a lot of money.
My number is 386.405.4408.
Jon Zolsky, your Daytona Beach connection