Last week my colleague Mark Ferguson posted an article on this blog which argues that real estate investments are a better and more effective vehicle for achievement of financial success than stocks for most of us.
While the article was good, the comments were absolutely priceless.
Interestingly, if I were to describe the spirit of the comments I would have to use the word Emotional – people are seemingly deeply committed to their point of view on both sides of the issue. Fitting – our beliefs define our reality, and we should be committed to them. However, all of us must realize that perception of reality is somewhat different from reality…
I promise that if you read this article to the end you’ll have no choice but to accept that estate is a much more viable investment vehicle for vast majority of people reading. You won’t have a choice, because regardless of your feelings on the matter I am going to provide you with a chain of logic based on universally accepted truths, even laws – realities that even stock investors generally do not dispute and you won’t be able to ignore.
And may be then we can put this argument to bed. Ready or not, here it comes:
Efficient Market Hypothesis
I’ve spoken about this in the past, but it seems appropriate and even necessary to do a little review. The Efficient Market Hypothesis is a theory that has been around since the 1960s, which states that the price of any security at any given time reflects all of the available information that is pertinent to the setting of value of said security. It is presumed that in an efficient market all …read more