Just think, overnight a small group made a decision based on “an unexpected contraction in the service sector” that affects millions of investors. Of course the people at the top of the food chain, with all the money, may have not been affected quite as much as the small individual with his or her RRSP’s and mutual fund investments invested in stocks in the Dow Jones industrial average.
Does it scare you that you have no control over something like this? This is why Real Estate can be so safe and secure an investment. Decisions that affect Real Estate generally takes months to trickle down and affect pricing. Sure you see up swings and down swings in property values, but this is over months and years not day to day.
With the US recession jitters, who knows what will happen to the markets, over time they will balance out, but at what cost to your portfolio? It’s a catch-22 situation, do you sell while everyone else is selling and lose money, or do you hang on until it rebounds. If you do sell, what do you buy, gold, silver, bonds? Or perhaps you take a serious look at Real Estate investments. Think about it, has anything else gone up over the years as consistently as your own home?
We have had some hiccups, but the future sure looks bright in Alberta for the next five to seven years, if not even longer. Maybe the stock market shake up is the push you needed to look at something new and get started.
