They just don’t get it!
Here’s an article from MSNBC titled “If Housing Slumps, how Safe are You?“. It’s the typical line about how the housing market is poised to tumble and how even if you are diversified, you’ll loose everything and the economy will collapse, and blah blah blah.
Once again, the sky is falling. Chicken Little has been saying the sky is falling for years now. If you haven’t noticed, the sky is still in … well … the sky.
This concluding line pissed me off most:
Holding more of your savings in cash may make the most sense if you want to reduce your overall risk.
This has to be the stupidest thing I have ever read.
Hold your savings in cash and you will automatically loose 3-5% due to inflation. That’s safe?! If the dire times these morons predict actually come to fruition, then inflation will be worse.
If your portfolio is diversified, then you will be fine even during a real estate market downturn. The one thing you want most in your portfolio is a real estate index fund, especially during times of declining home prices. Why? Because most of these funds are filled with commercial, industrial, and rental property holdings. People have to live somewhere. Rental rates will go through the roof.
If you aren’t earning at least 3% on your money, then you are loosing money. Cash holdings! What the hell are these idiots thinking?
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