The market volatility continues! The last hour of every trading day lately seems to provide investors with that roller coaster feeling.
With each hour and day, the market seems to take on a new identity. Depending on who said what or what the rumour du jour seems to be, the stock market can move triple digits either way! What do investors think and how is the volatility driving their investment decisions?
In my opinion, investors' decisions are being clouded by their negative experiences with volatility in their investments. While the market has definitely taken on a negative tone, investing in equities (which includes real estate) is still the best way to grow wealth over time.
Individuals should have balance in their portfolios — real estate as part of a diversified portfolio makes sense, but investors shouldn't be sinking all their disposal income into their mortgages, especially if their interest rate is very low.
The real estate market in Toronto — and across Canada — is coming off its highs and slowing down, while the country’s stock market is coming off its lows and has a lot of room to grow. Why would an investor put all his or her money in real estate at this time?
It makes more sense to use the low interest rate environment to create a balanced portfolio and invest in large Canadian or U.S. equities paying good dividends to compliment investments in homes. If real estate prices should take a turn for the worst, investors will have their investments to fall back on, or vice versa.
When it comes to people’s homes they seem to forget the phrase, “never put all your eggs in one basket.”
How can I help?
_______________________________________________________________
b r i a n m a y e r real estate sales representative
Royal LePage Your Community Realty Brokerage
independently owned and operated
187 King St. East Toronto, ON. M5A 1J5
(416)-637-8000
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Posted by: Buy Viagra | Friday, August 06, 2010 at 01:55 AM