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A new Gallup poll finds that Americans holding individual stocks, stock mutual funds, or stocks...
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Thursday, April 21, 2011, 10:25 AM ETA new Gallup poll finds that Americans holding individual stocks, stock mutual funds, or stocks in their 401(k) or IRA falls to 54%, the lowest level since Gallup began regularly monitoring stock ownership in 1999. Real estate is viewed as the best long-term investment by 33% of respondents, vs. 24% for stocks, 24% for savings accounts/CDs, 12% for bonds.
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This news story has 13 comments:
That is still pretty high if one accounts for the low savings rate of the bottom 80%.
Some would say that's bullish - I say it's a change in sentiment that will take a decade to work off, if not longer.
Real estate as the best long term investment?
Puleeze!!!
And even then, you have to collect the rent yourself.
I like your other investments much better.
Actually, for the LONG HAUL I love real estate right now... assuming you can cash flow approximately even on a rental. Why?
1) Prices will ultimately go back up. Hopefully, never boom like they did before.
2) Controlling a fixed interest rate mortgage over the long haul is a superb hedge against inflation.
3) I dont know about you, but if someone offered to loan me 500 grand @ 4.75 % interest and I could write off the taxes I will do it.
4) It offers an amazing amount of leverage in a non recourse situation...
Like any investment, things can go south on you of course. The median value for the Home Price Index since 2000 is 123. If you had put down 30k to buy a 150k house in 2000 your house, on average, would be worth 181k now, (you would have doubled your money due to leverage). And you would have had a place to live or rent out, and tax deductions... And that is a scenario that would have taken place in an absolutely catastrophic 10 year window. Almost any other time window you can name would have been FABULOUSLY superior. I realize the analysis is geographically dependent, and that there are lots of other management issues involved... Actually, in many cases you would have done quite a bit better than that... The key would be to get out when the speculative bubble occurred, which was easy to see even at the time. I mean everyone knew it right? Nobody wanted the party to end.
bonds are best, followed by cds, with stocks and real estate as big losers