Now is not the time to faint or jump from the roller coaster. Who knows how the market will perform over the next few weeks.
by Glenn Mollette, Guest Commentator
Now may be a good time to buy but keep in mind the market may go down some more.
Don’t invest your grocery money in stock. This is the money you need every week for food, shelter, travel and overhead. This is not the money you spend on stock. If you do, then in two weeks you will have to sell your stock to eat and risk losing some of the money you invested. Only invest in stock what you don’t currently need for general living expenses. Who knows how the market will perform over the next few weeks. It’s going to be a few weeks or months before the tariffs really shape up as to what is really what. The reports are that numerous countries are coming to the table interested in making deals and playing fair with the United States. This will be good for us and them. As these deals stabilize look for the stock market to become more stable once again. If Japan, India, South Korea, Canada and Mexico all level the playing field with the United States our stock market will level out. If there are more reports of industry manufacturing coming to the United States the stock market will begin to rise again. Now may be a good time to buy but keep in mind the market may go down some more. If you bought VIG two weeks ago then you’ve already seen a significant drop. Keep in mind you only lose it if you sell it when the stock is down. I feel confident that the stock market will come back bigger and bolder than ever but it may take a few months or longer. The stock market has averaged making about ten percent over the last fifty years. This means it has had years when it made more and years when it made less. An average of ten percent is about the best you can do on your money over the long haul. Now is not the time to faint or jump from the roller coaster. Rely on your stable income such as Social Security, or any other stable income you may have. If you have a regular paying job you may want to stay with it a little while longer if you can and if you enjoy your work.
About the author ~
Glen Mollett is the author of 13 books including Uncommom Sense, the Spiritual Chocolate series, Grandpa's Store, Minister's Guidebook insights from a fellow minister. His column is published weekly in over 600 publications in all 50 states.
The views expressed are those of the author and are not necessarily representative of any other group or organization. We welcome comments and views from our readers. Submit your letters to the editor or commentary on a current event 24/7 to editor@oursentinel.com.
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This is what so many people get caught up in "Expected Returns". In other words, which investment vehicle will make more money.
In reality, this is like comparing apples to oranges. The most convenient way to compare the returns is using the S&P 500 and a Vanguard Real Estate ETF and throwing them up side by side.
If I’m being honest, I think this is a lazy methodology and it is only used because of the convenience. In general, the returns will be comparable, but it will come down to the specific investment opportunity and it is lazy to make blanket statements about returns. Obviously, you need to invest in an asset that will create a return; however, there are other items to consider such as the investing experience, diversification, taxation, risk management, liquidity, and your financial goals.
Finally, something that is often overlooked in any investment is the experience of that investment.
When I say experience, I mean how is your investment going to make you feel, affect your sleep, make a societal impact, and so on. To this point, this article has been fact-driven, but the remainder of this section is 100% my personal opinion and it is absolutely biased towards real estate.
The stock market is great for people who want to put their money into a system to generate a long-term return without having to make many decisions. I worry about people who have all of their money tied up in the stock market and/or retirement accounts that are exclusively invested in the stock market (you can use them to invest in real estate too). The reason being, I don’t trust the decision makers that control these financial markets and I would rather have my money in Main Street real estate than on Wall Street.
Real estate is great for people who want to have more control over their investment, make a societal impact, and generate long-term wealth.
I love being able to create my own business plan, to meet my residents and give them a place to call home, and the proven path to create a generational financial impact. I worry about real estate investors who think that they will be able to get rich quick and think it will be easy money.
News flash … it’s a grind. There are a lot of bad actors in the industry that only care about money, and I think that is short-sighted in that this is long-term game.
In conclusion, the answer to this question should come from within and it should complement your financial goals and individual skill set.
To me, that means I should heavily invest in real estate and opportunistically invest in the stock market. To you, that could mean an entirely different investing strategy.
I encourage you to further your research on both of these topics and seek out reputable investors that have experience with both real estate and/or the stock market. When talking with other investors, make sure that you come into the conversation with an open mind, do your best to leave your biases at the door, and give yourself the chance to create a better financial future.
