Conjecture, allot of people could have done quite well buying AAPL in 2000, Telsa is angel funding period.
People who turned $50,000 into $100,000 (though possible) but rare. 1 in 1000 people did that if not higher.
Simple economics says allot of people had to lose their 50 for others to gain the 100.
What's not conjecture? People who bought a house in 2008 instead of renting. They are in the hundreds of thousands of dollars positive in equity.
Even floating the idea of doubling a TFSA is crazier then saying Vancouver RE will hit 3 million.
Beating a broad index like S&P YOY at 7-9% is already considered VERY VERY GOOD.
I would like to take some stock tips for you guys and doubbing of your money.
Read my last comment to smartypants. Have the discipline to invest slowly over time and you will make lots of money! You're right about the indices, its hard to beat them...but if you can't beat'em ...join'em, 7-9% will double your money in 8-10 years and if you are dollar cost averaging and reinvesting your dividends you can double your money in 4-5years. Also read my post from several weeks back, the system is rigged. The Market indices replace the dogs with new up and coming stars like Apple and perhaps Tesla will make it one day onto the DOW (likely already in the S&P). So if you just but 10-15% of your income into an index fund every payday, you will end up with almost guaranteed millions of dollars by the end of your life...that's it no magic, almost no risk and nothing to think about or worry about market timing, etc. Combine that with a house purchase and you will live a comfortable life and be able to afford a great lifestyle.. retiring at 55 or maybe even sooner.
The stock market is not a zero sum game!! It's actually the biggest wealth creator of all time and is the engine of a capitalist market based economy. The stock market is what made America Great, because it provides the capital funding to grow small companies much faster, jnto powerhouse corporations, while providing the common man with a place to make decent returns....True you can lose your shirt if you not careful, and more and more you are swimming with the sharks, but again simple strategies will allow you to not become bait for those sharks.
The stock market only works so long as everyone stays in. Thats why whenever there is a crisis the big wigs come on media to convince everyone to hold.
Its a shell game. The day of reckoning for stocks will come.
Ok one argument with ETB, than I'm out for a while
How is Real Estate any different??? The US Real Estate Crash is a perfect example and if the market in Vancouver does turn the bears of the last ten years are going to be right and its going to sting, only worse than a stock market crash, given that a lot of people are over leveraged and will no longer have the means to pay their underwater mortgages.
In the event of a Stock Market Crash, those people who are dollar cost averaging will have a very rare chance to significantly build their holdings and the smart ones will double their contributions at that point. They will then be in a position to profit once the market turns up again. However, most will pull the plug on their investments and stop contributing, which will be a huge mistake on their part.
I would argue that a stock market crash is much less devastating then a RE crash, since the stock market money, should be money you technically don't need to live, you also aren't leveraging debt to buy into the stock market (in most cases), and won't lose your home if it does go bad (in most cases).
However in the end, our economy is all really just a big ponzi scheme, its called Capitalism, and if the Sh*t does hit the fan it won't matter if you are in Stocks, Bonds, Real Estate or have money stuffed under your mattress. It will all be worthless. Yes maybe having land will be better, but you better have the means to hold onto the land and protect it, otherwise it'll be gone too. Or in BC if the Big One Hits we will all be equally F*cked living in tents on our front lawns. Guaranteed your real estate will be worth much less or maybe worthless over night in those disaster scenarios.
Last question ETB...Why do you sometimes come to the defence of smartypants, his posts are downright stupid, you have admitted to participate in a pension plan, which is exactly what I am advocating for, but yet you somehow agree with those dumb comments....similar to the Mortgage employment insurance. Some of the dumbest ideas and yet you are somehow coming to his defence???
Obviously I've ruffled some feathers, but remember I'm all in on Real Estate, I have a significant portfolio of real estate. I have built it up mostly by using the Never Sell unless you absolutely have to sell philosophy...I instead turned these assets into Income producing assets. I also have a counter balance, which is a significant stock market portfolio as well. Most of that was built up through regular contributions to a DC Pension plan, RRSPs as well as Employee Share Plans. All of these have been great tools and I have experienced two big crashes in my time, with as much as 60% losses after the dot com crash, as well as a 70% pull back in my company shares at one point. I know people that stopped contributing at that exact point and missed out on tens of thousands in future gains, when the bounce back occurred. I have always tried to keep a balanced approach and pulled through with more money and bigger profits by holding the course and being patient.
I know first hand these strategies work...now I'm planning for Freedom 45 baby...taxes be damned smartypants