Jumping out of windows

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Those of you who are into shares will be well aware that the last 14 days has devastated share markets world wide.

Like property, share prices in the future can only be predicted, and certainly no one could have predicted the current carnage.

However UNLIKE property, shares may take a long long time to recover and many companies may vanish meaning people’s losses are never recoverable.

I looked at shares before property and the current situation is exactly why I chose property and have avoided shares. This is small comfort to the many mum’s and dad’s who follow the advice of uninformed advisers and journalists but should be an encouragement to those of you who are in property.

Things are a bit quiet in the property market currently and it may take a few months or a couple of years to get going again.

So we can jump into another hot market like Oz for a year or two and keep investing, knowing that our NZ portfolio may drop slightly but in reality will simply keep going up, doubling every ten years.
However with shares being globally linked now when it is raining the entire planet gets wet.

This is a great reason to stick with property over shares. Less volatility and the ability to move into different markets that are in different phases.

So for those of you caught in the share market I trust you are not overly exposed and that you have a strategy to recover.

And for those of you in property, keep going. There are bargains around in NZ and OZ is truly a breathtaking opportunity for the next couple of years.

It’s interesting for me that when I looked at shares it stuck out like the proverbial sore thumb that it was a risky volatile playing field compared with property. Maybe it was just God warning me however I think it is simply is riskier, so why do it when you can get such great results with a more solid medium??

I was going to say a more “blue chip” medium but that reminded me of the current BlueChip disaster that people are currently facing.

And BlueChip is a good reminder of
A: Get a good education
B: Do your own due diligence
C: Don’t pay retail for property and
D: IF you opt for a passive investment option make sure you look at the company and be certain you can trust the principals and that they live by their stated principles.

Stay Safe Dean Letfus @ www.massiveaction.co.nz (AKA Dean Leftus @ www.massiveaction.co.nz)

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