I went the other direction and increased my risk by buying trading shares for the first time ever a little while back at $382.
I plan to sell them in the not too distant future to close on a disused 1958 log cabin (of what appears to be old growth cedar. It’s a small Pan Abode cabin:
Pan Abode Cedar Homes) that I will restore and rent.
However, my strategy is less risky than it appears, imho. Here’s why:
I’ve lived many places in the US and interacted with people at different socioeconomic levels in my life. I understand what people on the many sides are trying to express with their sometimes less than articulate statements — and, perhaps more importantly, can ignore the words that the uncharitable would put in each other’s mouths.
I also have considerable confidence in our system of governance with good reason I believe.
So I am unmoved by the tearing of hair and rending of garments. I am quite sanguine about the stability of the country and markets despite occasional bouts of drama.
If I’m wrong, I may have to dip into my core shares.
This is an investment and also a project I will enjoy: It is not my primary dwelling.
If I am
very wrong, I will walk away from the deal losing my earnest money and wait for the SP to recover. This is a slow close of 90 days. I’m guessing that the SPoon might bend in early December, but not really counting on it. (The recent S&P survey posted up thread and today’s walk down boost my confidence of this though).
I am personally more comfortable leveraging real estate than using margin for stock. Seems a shame to waste the opportunity for cheap money the Fed is offering, too.
As an aside to those who have asked about other investments besides Tesla, I will point out that I am investing in what I consider quality real estate (the cabin sits on a property that is rather nicely situated). I will also point out that, as with my Tesla investment, I have and continue to put in the effort necessary to understand what I am doing.
Not advice.
