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2011-08-11 21:59:17

Real Estate vs Stock Market

While I hate to mix business and politics for the fear that I will upset far too many people, I feel that this is an issue that at this time in our country’s history I must address.

Let’s start by saying I’m a middle of the road kind of guy leaning right. I’ve often joked that I’m a liberal conservative. I think both the far left and the far right do more harm than good for our country.

However, I believe in the freedom of the press, the freedom of speech, and the right to bear arms, freedom of religion, smaller government and less tax’s.

I have voted for both Republican Presidents and Democratic Presidents. But, with that being said, the current Washington makeup is not good for our country and it is far from good for our industry.

In my very humble opinion, I believe it would be a much safer bet to buy Real Estate at this time than it is to buy stocks. In just the last week I have seen my wife’s and my stock portfolio lose over $20,000. I don’t know about you, but $20,000 is a big deal to us.

At the same time where I own most of my Real Estate for the past few months, I have seen prices rising on Real Estate.

Again in my humble opinion I don’t think the stock market for the next two years is going to be a very stable place to put your money. Just now as I was writing this article the “ECONOMIST MAGAZINE” called me about a new online Real Estate Marketing piece they’re creating? I shared with them that I was doing this article and they agreed with me that in the next couple of years Real Estate is probably the safer place to have your money.

We have reached the bottom end of the market in almost all areas of the country as far as Real Estate prices go. I’m sure I will get a lot of mail disagreeing with this statement, but I stick by it. At the same time the uncertainty of the stock market due to the debt in the country, the unknowns facing companies with Obamacare and with the uncertainty of taxes over the next two years will hold down the stock market.

So the bottom line is, once again in my opinion, Real Estate is a safer haven for the next couple of years. I didn’t lose $20,000 in the last week on my Real Estate holdings, but I did lose $20,000 in the stock market. In fact if my Real Estate holdings went up just 1% I’m up $40,000.00

Last night my wife and I attended a seminar put on by “ Charles Swaab”, I left very depressed. Basically they said we can kiss good bye to any real growth in stocks over the next few years.

Now today the stock market has crashed again; going down as of this writing, by over 300 points. However, mortgage rates have also dived. So now you have Real Estate that is actually starting to come back, combined with the lowest rates yet, and a stock market in turmoil. Now is probably the best time in years to buy Real Estate.

So as you can see, I’m a true believer in putting my money in Real Estate at this time in the current economy.

If you have investors you’re working with they will more than likely share my sentiments as far as to where they would choose to put their money at this time.

So Realtors, start spreading the news and start working with investors.

James A. Crumbaugh III is CEO of Allison James Estates and Homes, the Number One Virtual Real Estate Brokerage in the United States. You may reach Mr. Crumbaugh at

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