Okay, I’m going to start this conversation with words I never, ever thought I’d say: Reddit users have exposed some pretty big weaknesses in stock investing. Seriously. Never once did I think those words would ever be put together in the same sentence, but here we are, watching the fallout from a hedge fund’s attempt at shorting GameStop stock and Reddit users pulling the rug right out from under them.

I don’t even know what day it is when words like this come out of my mouth. One thing I do know, though, is that real estate has long been considered a safer and more stable investment than stocks, and I guess I can thank those Reddit users for proving the point, here. Let’s talk about why investing in real estate is smarter than gold and stocks.

Okay, so weird Reddit shenanigans aside, could we ever have considered stocks a safer option? The truth is that stocks and bonds can be amazing investment options, but they’re tied pretty tightly to the state of the national economy—and, let’s be honest, the state of a lot of billionaires’ bank accounts.

If the country experiences financial unrest, then, well, people start dumping their stocks and bonds for a quick buck. Or, they might search out more tangible investments, like maybe gold and other precious metals.

And yeah! Who wouldn’t want to start building up a vault of gold, man? To see that gleam every time you open the vault door to check on your stores… seriously… It’s not like anybody could stockpile gold. One bar that weighs as much a liter bottle of water can cost more than $60,000. That stockpile is shrinking in your imagination now, isn’t it?

Okay, but just for fun, let’s pretend that we can afford some gold bars. Stocks have plummeted, and we have our tangible assets. We’re set, right? Well, sort of. As long as the economy that sent stocks plummeting doesn’t bounce back.

See, the price of gold goes up when stock prices go down. A good balance of both stocks and precious metals is helpful—again, assuming you can purchase a good bar or two of the good stuff.

So, what’s a blossoming investor to do? 

I submit: Real estate. While prices for stocks and precious metals fluctuate wildly according to the state of the economy, land values continue to steadily rise over time. Sure, that means you may not get that thrill that comes with buying and selling stocks for short-term gains, but we’re not talking about a quick buck, are we? We’re talking about something steady and stable that you can rely on to steadily increase in value while you keep on keepin’ on.

Of course, I don’t want to take away those dreams of short-term gains. That’s possible, too. There are pockets of Nashville that are still growing by the day, with little gems that offer plenty of room for fast profit. With a solid investment plan in mind, you could still flip some homes and make some money. Maybe not retirement money. Not “set for life” money. But enough money to keep investing into more real estate.

And the best part is, no Reddit user can mess with that.

Want to talk about it? Let me know. And by “it” I mean real estate investing. Not Reddit or GameStop, man. Get out of here with that.

By Published On: February 15th, 2021

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