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Stocks lack most of the weaknesses listed in the article. Point by point . . . - Not an ongoing drain on cash. - Liquid. - Cheap to buy and sell. - Simple t
by asfasgasg 9y ago
Stocks lack most of the weaknesses listed in the article. Point by point . . .
- Not an ongoing drain on cash.
- Liquid.
- Cheap to buy and sell.
- Simple to buy and sell.
- Have historically generated high returns. (Although see my earlier comment for questions about whether this truly distinguishes stocks from housing.)
- Normally not leveraged.
- Normally not mortgaged.
- Often productive (dividends).
- Mobile. You can sell it to anyone in the world.
- Many large corporations are multi-national, and certainly immune to any event that would occur at a neighborhood level.
- Do not discourage you from moving to seek better opportunities.
- Stocks can be pretty cheap. Shares of good ETFs are in reach of anyone.
- Require no ongoing maintenance.
- Relatively immune to local or even global weather.
- Generally tax efficient, especially if held in a retirement account.
- Not subject to eminent domain.
What about this analysis makes you think that stocks fare poorly in it?
- AstralStorm 9y agoHow totally incorrect. Stocks are typically highly leveraged by big investors. Otherwise the gains are highly limited. Large bigcorps ate also vulnerable to market downturns and can fail. This has been shown in the recent lending crisis and car manufacturer problems. Stock require maintenance as in you have to watch the prices and the general condition of the market at the very least or you stand to lose a lot of money. Stocks are not even immune to power outages. (E.g. one at certain flash manufacturing plant of Samsung) Media are less predictable than weather and affect stock prices a lot. Main factor in prices of mortgages is supply of houses and interest rates which are relatively predictable. Stocks are taxed at capital gains tax level when you sell them like everything else. Whole you can technically sell stocks to anyone, not anyone will want to buy your stocks anyway or will buy it for a massive discount. The remaining point about not moving is moot when you have a family. Want to move yearly with a kid or two in tow? Good luck! And then you also presume there are always better opportunities to move to. This might be true in a score of professions but not most of them.