Why I’m getting out of the stock market for good

pandaMy stocks and mutual funds are not doing well. They haven’t done well since 2008. I’m just waiting for them to rise to the level of my original investment and them I’m taking everything I can out of the stock market. I’m investing my money into real estate.

My wife and I have a couple of investment properties. We are doing an addition on our Uptown Waterloo home. There is only so much real estate in Waterloo Region not to mention the world. Over time, unless you live in a one industry town (and the industry dies) the value of real estate always goes up.

The stock market, on the other hand has become a sham. It used to be that brick and mortar companies would issue stocks to raise funds to expand production, open new markets, create jobs, inspire economic growth…

Now we don’t really have industry anymore. Now we have nothing. Dot-com bubbles. Hedge funds and junk bonds. Derivatives. We have IPO’s based on what a company might do, maybe. The value of stocks fluctuate widely and wildly. And investors, like me have no control.

I was reading an article recently about the baby boomers. They have 44% of all mutual funds. The first of the boomers are now turning 65. Everyday for the next twenty years another few thousand baby boomers will stop working, stop paying into mutual funds and start actually taking money out of the market.

How do you think that will impact investments and interest rates?

And how will it impact housing and real estate, I wonder?

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