In every crisis there is opportunity, and for those hurting, maybe now is the time to consider that opportunity may help offset losses. Cash is king in a crisis. It always is. There are tremendous opportunities in the stock market, but of course, none of us can be sure which stock that would be. The risk is extraordinarily high. But real estate is a buy, and the risk is a fraction of the risk in stocks.
By the way, there are two major industries that are going to take hits in this market: 1.) financial advisors and money managers, and 2.) real estate brokers and agents. This is a no brainer, but watch for many offices in these two industries to close in the next six months.
There will be opportunities to pick up businesses in trouble or the stock of companies that are grossly undervalued, and there will be many. One author, Jim Dines, said it well.
The real opportunity, in my humble opinion, in these coming weeks and months will be real estate. It’s a buyer’s market like we haven’t seen in decades, and buyers have incredible power to negotiate low prices with just about any terms they want. Cash is King and Queen here. If you want a safe place to put cash with relatively low risk and good potential for appreciation, there’s no doubt that real estate is the place to be.
Last Updated on October 22, 2008 by Chuck Marunde