Yesterday was a really interesting day to watch on Wall Street. It was one of the worst days of the year and it feels like the market has had a lot of those this year, but it has also and many really good days and some very average days. What I am thinking now is that movement is good.
Think about how the market behaved for most of the time from June until now. It has been mostly sideways days with maybe a half a percentage gain or loss and then suddenly we are getting violent swings. Those swings can only happen with increased activity, and activity means buying and selling. That means interest is returning to the market. People want to make deals.
Or at least I hope that is the case. Now on to other things. I really want to read a little bit before I have to start helping with the kids. That is generally at 7:00 AM and it is just about to be 6:30, but I also need to hammer out my idea for my BNI presentation on buy and hold real estate investing being the retirement investment that pays you. What I want to compare is putting $100K in an index fund vs using it as a down payment on a $400K home and netting $400 a month. Between the equity paydown, appreciation, and putting that $400 in an index fund over 30 years where does that end up.
It is a simple thing and either myself or AI could do it in a few minutes because you don’t even have to do the equity paydown math. That is why I choose 30 years. That of course leaves out a lot of the benefits of real estate investing but I think it might make a point. Or it might not. The 11% return of the index fund over the last 20 years is hard to beat.
Today in the market will be interesting. Very interesting. AI fears are the listed reason for yesterday’s selloff and I don’t know if I buy it. I know I want to buy some things but we have to see which direction things are headed before I commit. I don’t want to walk into danger if I don’t have to. I’d rather miss the bottom on the upswing than the down in other words.
