DZ, the above are a couple of articles that compare investing to gambling, as they pertain to various investments, including real estate. There are many more online.
Having gone through many real estate cycles, most of us here made “educated guesses” when we chose to invest in real estate during the past recession. These “educated guesses” were based upon the fact that, among other factors, we were aware that, as most investments, there are cycles, so we knew, barring the extinction of humanity, there would, as cycles go, be a rebound, so we would, at the very least, break even.
That said, although I know you want to continue this dissertation indefinitely, regardless of what we can prove to you to be true, even if you are proven to be 100% correct, as far as this cycle goes, it will have no effect on our situations–as we have already far exceeded our initial investments far beyond the impact of any present or future contractions.
If you are truly concerned about others who did not invest during a down cycle opportunity, and are now investing in real estate at exorbitantly high (inflated?–we don’t know yet) prices, you should make every effort to find a platform to inform them of their folly, but I just don’t see the point as far as most of us here are concerned, and I say all of this in all sincerity.[/quote]
That’s actually a pretty good article that hopefully dz will understand after reading it
specifically
[quote]
Investors must always decide how much money they want to risk. Some traders typically risk 2-5% of their capital base on any particular trade. Longer-term investors constantly hear the virtues of diversification across different asset classes. However, risk and return expectations can vary widely within the same asset class, especially if it’s a large one, as the equities class is. For example, a blue-chip stock that trades on the New York Stock Exchange will have a very different risk-return profile from a micro-cap stock that trades on a small exchange.
This, in essence, is an investment risk management strategy: Spreading your capital across different assets, or different types of assets within the same class, will likely help minimize potential losses.
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