I love investing in the stock market. I got started managing our families investments years ago when I looked at the fees we were being charged by the large firm who was managing our portfolio, as well as the rate of return we were getting. That was enough to make me dedicate several hours a week to managing our own portfolio. I'm doing a much better job that the "professional" who was managing our money, and I've grown to love the research and patience it takes to make money in the stock market.
One of the first lessons you learn is to divorce yourself from emotional selling and buying. Put it this way: if you see it on CNBC then it's too late. If they're reporting a down day in the market and you or your broker sold stock that day then you're just one of the lemmings. Emotional down markets are simply like the flashing blue light at KMart: sale time for smart investors.
Can the same be said for real estate markets? I've seen some recent evidence of this in the Denver real estate market. It will take years for me to understand if some of the investors I've seen scooping up properties (using cash much of the time) are ahead of the game, or unwise. I tend to think they're ahead of the curve...mostly for obvious reasons like: if you're using cash to buy properties (plural) then you likely have a good head for investing.
It will be interesting to watch how this unfolds.
Comments(0)