I cannot find my 50 or 100 year charts, but when we prop bulls talk about the market going upwards, we mean over a 10 year period, and it can stay flat for 8 years before taking off again, there are road blocks on the way to anything, and dips and troughs, and forks in the road, but overall the trend is up.........it follows parallel to inflation......... here is a chart over 14 years, since the last downturn of 1989/1990...... even a simplistic person can see where the investment will lead........... and its a very different strategy to that of the stockmarket traders...........who buy and sell on a regular basis to make annual incomes..........
I budget for low rents, and negative cash flow on an annual basis........but the prize for my type of investing is the huge capital gains accruing over a period of time, and thats not all.....there is more..... PLUS the additional equity I can use as leverage to invest further in any asset class..........without ever having to sell Conservative investors in the stockmarket do the same thing...the only difference is.........the stockmarket can turn up some awful surprises.....HIA, Enron, Centro, ABC, B&B, NAB.........get the drift......
Both asset classes can provide similar rewards for the long term investor.......but I feel I have more control over my property/ asset compared to the stockmarket........I am not exposed to a bad manager/ management reducing my investment to nil... PS this chart confirms there were lots of roadblocks along the way
