Stocks Houses
Stocks are real. They have value. The shares represent a real company that employs people. Houses are real. They have value. They allow an owner or tenant to have shelter in a home.
Stocks can go down in value. Houses can go down in value.
Stocks can drop to zero. Unless it burns down, a house will not drop to zero

The point is that your home is an investment. But first, it is your home. For all the concerns we have about the decline in home values, we don’t have to worry about it as if it were a stock.

A reminder: Here is what happened to Bear Stearns & what it would like in home values

Before Crash Price After Crash Price
Bear Stearns $171.10 $2
$850,000 Home (Sample) $850,000 $9,936
$750,000 $750,000 $8,767
$650,000 $650,000 $7,598
$550,000 $550,000 $6,429
$450,000 $450,000 $5,260

In the real world stocks can & do drop to zero. Your home will always have value as a home. That’s why real estate is a safe haven from the stock market.

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