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You’re probably familiar with the concept of investing in stocks, but here’s a quick overview.

The “stocks” you buy are small investments in a company; basically, a share of ownership. The stock value fluctuates with the value of the company and the stock price can be more or less depending on the time of your purchase.

People buy stocks with the intention of making money on them which can happen in two basic ways: (a) either through cash dividends which a company might distribute to shareholders if it’s doing well financially, or (2) by selling the stocks for more than they were purchased for.

Stocks are one of the first investment options that people turn to when they think of investing. This does not mean that they are the best investment option.

Stock prices are influenced by so many factors. Supply and demand influence every market, but the stock market is especially susceptible to investor sentiment (aka emotions). If you’re trying to invest in a popular company… well, good luck. When the demand for a stock is high, the price gets high with it.

A single share of the most expensive stock in the New York Stock Exchange, Berkshire Hathaway, costs around 340k per stock.

But here’s the thing: on March 23rd, 2020, the price of that stock was closer to 240k; a hundred thousand dollars lessWhat’s going on with that?

Well, a few more things influence the stock market. Supply and demand can be shot off in different directions depending on things like how safe people are feeling in the current social and political and economic climates.

March 2020 was around the time the pandemic started getting really bad, and for that reason, people were selling their shares like crazy. That’s the thing about stocks. They’re pretty easy to liquidate, and so when people get nervous or fearful, they cut their losses and run, taking the value of the stock down with them.

Another thing about stocks is that they’re heavily influenced by the economy at large. If you invest in Apple, and then everyone stops buying iPhones because the economy is going sour, then suddenly, your stock isn’t going to be doing well. And the economy has been all over the place lately.

So, what’s a market you can count on to weather the storms of the economy?

Think real estate.

Real estate is a solid market. It’s right there in the name: real estate is REAL. It’s a tangible piece of land with a sturdy building that sits on it. Those things aren’t going anywhere no matter what the economy is doing. Stocks are, in a way, abstract. They’re just reflections of how a company is doing, but they’re not an actual thing.

Real estate is stable for a few reasons. One is the above-mentioned solid nature of it. Properties you’ve invested in don’t just get up and walk away.

Supply and demand is less topsy-turvy in real estate as they are in the stock market. No matter what the economy is doing, people still need places to live or do business. That’s always going to be the case. The demand is always going to be there. And the supply? That’s pretty much set. The Earth isn’t getting any bigger. The demand is more likely to outrun the supply- and that means that property you invest in is going to, if anything, increase in value.

Even when external factors do influence the real estate market, they tend to do so much more slowly and less drastically than is the case in the stock market. Let’s talk about Berkshire Hathaway again. We already said that on the 23rd of March, it had a value of 240k per share. Want to know what it was worth three weeks before?

324k. That’s a drop of 84k in three weeks.

Real estate doesn’t pull that kind of trick on you. If you are looking for an investment that won’t give you the run-around every other week, think about investing in properties.

 

 

 

ABOUT July Ono.

JulyOno.com is a marketing platform for a real estate investment company. We have been actively involved in the Lower Mainland area real estate investing for a number of years.  Our mission is to provide local housing and commercial workspace to quality tenants while at the same time providing an above average return on investment (R.O.I.) for our investor partners and for ourselves. It is truly a win-win-win way of investing!

July offers her investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact July Ono.

For more information about July and her investment program, please call (604) 830-2438 and email her at july@julyono.com or visit https://julyono.com/

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