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<p>[QUOTE="mikem2000, post: 1837937, member: 30574"]A couple things here. First you are talking about some diversification, with land, real estate, and bullion, which is a good thing, and I believe some amount of physical bullion has a place, in most portfolio's. The issue I have with only investing in real estate and commodities, is that it is very hard to get ahead with such a strategy. They fact for almost all of us is our salaries alone are not high enough to put us on the path of financial freedom, and assets that really will just preserve buying power (ie. track inflation) will not do it either.</p><p><br /></p><p>The only realistic way to "get ahead of the curve" is to take some calculated risk. Equities are a vehicle that can actually build wealth instead of just preseving it.</p><p><br /></p><p>Now, lets look at a mythical example to put things in proper perspective. Lets look at a casino. I really don't visit them much since the most likely scenario is I will lose money. Now in our mythical example though, things are different. Let's say there is a casino with a row of slot machines that are programmed to favor the bettor and not the house. The way the odds are set, is if you play for 6 hours, you will have an 80% chance of "winning" from 1% to 100% of your money. No guarantees, you still have a 20% chance of losing some or all of your money. </p><p><br /></p><p>So the question is, Would you play at such a casino? If the answer is no because you don't want to assume the risk even if the odds are in your favor, then I agree, equites are not for you. On the other hand, if you feel like you would like to play that game, then you might want to rethink your investment strategy, and move a portion of your wealth into the equites market.</p><p><br /></p><p> It is all about the odds.[/QUOTE]</p><p><br /></p>
[QUOTE="mikem2000, post: 1837937, member: 30574"]A couple things here. First you are talking about some diversification, with land, real estate, and bullion, which is a good thing, and I believe some amount of physical bullion has a place, in most portfolio's. The issue I have with only investing in real estate and commodities, is that it is very hard to get ahead with such a strategy. They fact for almost all of us is our salaries alone are not high enough to put us on the path of financial freedom, and assets that really will just preserve buying power (ie. track inflation) will not do it either. The only realistic way to "get ahead of the curve" is to take some calculated risk. Equities are a vehicle that can actually build wealth instead of just preseving it. Now, lets look at a mythical example to put things in proper perspective. Lets look at a casino. I really don't visit them much since the most likely scenario is I will lose money. Now in our mythical example though, things are different. Let's say there is a casino with a row of slot machines that are programmed to favor the bettor and not the house. The way the odds are set, is if you play for 6 hours, you will have an 80% chance of "winning" from 1% to 100% of your money. No guarantees, you still have a 20% chance of losing some or all of your money. So the question is, Would you play at such a casino? If the answer is no because you don't want to assume the risk even if the odds are in your favor, then I agree, equites are not for you. On the other hand, if you feel like you would like to play that game, then you might want to rethink your investment strategy, and move a portion of your wealth into the equites market. It is all about the odds.[/QUOTE]
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