Shawn Lane, Six Months, Two Years discussed on Del Walmsley


Radio show today i'm dismantling an article written by somebody who knows nothing about what he's talking about the article is seven reasons why stocks are better than real estate and some shawn lane golias or something like that i don't know if guys marketwatch article and somebody sent it to me and i don't know who sean is so you know i'm picking on some guy i don't even know but the bottom line is if you read is material you can tell he doesn't know what we do at all he has no idea at all and he has no idea how to be rich if he's rich it's because you can't be rich saying tells me he can't be rich is no way could be rich i mean he's talking about things in such an ignorant manner all he could do is make money save money make money save money because he's not making any money investing the way he's sitting this thing up his mind the next reason he says number six reason is because real estate or stocks are safer the real estate when the market starts to go down you can get out of stocks easier that's absolutely alive here's the way i want you to see it i want you to vision this vision that you're standing there owning stocks and a guy's got a gun to your head and he says the stock market's going to go down today three hundred five hundred points you're at work can you get out patrick no you're not gonna be able to get out in the middle but three or four or five hundred point drop did you take to take the gun and shoots a bullet at you and you're dead you can't get out of the way of something that moves that quickly the stock market moves very rapidly now let's take real estate let's say somebody says okay interest rates are starting to go up that means there's going to be some point where the cost of real estate with the interest rates involved is going to not allow the price of real estate to go up anymore if they start tightening up the lending requirements or they let the lender requirements get loose and people start defaulting loans over a long period of time you're going to see that there's going to be the loosening of the market where it becomes unsafe there's a bubble people are paying way too much real estate i want you to think about that as being a train tracks and a guy standing there with your going look train's coming in it's going to run you down there's no doubt about it it's going to run you down and you go no it's not i'm just saying step off the tracks you can come in and you can see that to come in and when we had the real estate drop in two thousand eight two thousand nine the only people lost any money we're the people that didn't know what they're doing they paid way too much for the stuff they bought there were speculative buyers in the market to buy and flip type stop that's what they were doing they're stuck with the stuff it was people who lost their jobs couldn't pay the payments on the real estate bought which they shouldn't have bought because they couldn't afford to pay it you know if you can't afford to pay for your real estate i'm talking about what you live in even if you don't have a job for six months to year then you get too expensive a piece of real estate you're living in and so these people they they lost this money over a couple year period of time because ignorant decisions where they didn't listen for the train coming down the tracks during that very time when everybody else losing money we were making a killing probably the most profitable two years i ever had in my tire life was two thousand nine two thousand ten just golly gosh great investing and everybody else to say well oh my god real estate is taken us all down no it took you down right so think about that would you rather have a gun to your head as a threat or a train down the tracks as a threat i would suggest the train is what i'll take every day that thing waking up tomorrow and having by noon to stocks go down five hundred.

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