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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: NOW who wrote (11837)7/28/2003 7:04:12 PM
From: TradeliteRespond to of 306849
 
<<"Real estate never really goes down in value". And neither does the stock market. >>

You raised an interesting point. My father has owned a particular stock for about 40 years now, and this stock (which actually is connected to the housing industry in many ways) keeps raising its dividend time after time after time.

Not to mention the number of times the stock has split, so now my dad owns thousands of shares in a company in which his initial investment many years ago was about 17 bucks. He gets several thousand dollars a year in dividends from this stock.

I guess you've heard CNBC gurus touting the renewed interest in dividend-paying stocks lately--they're the latest and greatest thing, apparently, given recent tax law changes reducing the tax on ordinary stock dividends.

So does the stock market go down? Yes, but not some stocks in some portfolios. If the portfolio is held for a long time, it's amazing what comes out at the end. Same with real estate. Ask anyone who has held their home for a long time---will they get anything out of it at the end to justify the initial investment?