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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Tradelite who wrote (1329)1/11/2002 1:53:07 AM
From: GraceZRead Replies (1) of 306849
 
The market wasn't so hot, as I recall, anyway.

If I had to pick a year to get in a time machine in order to invest in the stock market it would be hard to pick a better one than 1982. Like October 1982 when the DOW was right around 800 something. So now say you bought a house for 100k and you put 20% down with a closing cost of 6k. That's 26K you could have put in the 30 DOW stocks, not exactly the riskiest investment out there. To keep it simple you bought and held the index so there were no taxes except on dividends. Not even figuring the dividends, your 26k turned into $307,235 as of today. The dividend yield and compounding of that yield makes the comparison even worse and that's after a 20% decline from the DOW top of 12K.

Now what were you saying about not much opportunity cost? -g-
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