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RE: Earn 13% per year with these Low Risk, Tax Free, Inflation protected Investments

in #investment9 years ago

I think with certain stocks and investment choices if you spread your risk appropriately then you will see growth even during times of recession. Certain stocks performed well even during the 2008 recession when the housing market wasn't doing so well. In addition I don't see anything fundamentally improved about our economy since the collapse of 2008 and expect to see another collapse much worse this time brought on by automation. I expect politicians and low income voters to blame their lost jobs on immigration (illegal immigration) instead of automation and I expect all sorts of instability when the bread and butter job of truck driver is dramatically effected by the self driving vehicle.

Overall stocks perform very well over the decades and if you own the right dividend stocks you can receive income from dividends even during an economic crisis. The dividend payments may not always grow at the same rate because for some years dividend stocks are in fashion and go out of fashion in other years but there are certain companies that aren't going to go away and certain products that people are always likely to buy. Personally I would feel very safe in a carefully inspected diversified portfolio of dividend stocks but I might not feel safe in a $300,000 house in an uncertain economy. It's very much like how some people bought gold to prepare for the last crisis instead of a house and people in 2004 might have wondered why anyone would want to be buying gold but by 2008 it made sense.

I would consider a mobile home but I don't think I will buy a home because I don't think I'll need one. I can always move to where the cost of living is cheaper or expect that rent will go down. If I were going to buy a home eventually then I wouldn't be paying $300,000 but more in the range of the price of a luxury car and I would not buy a home to flip it because I honestly don't believe the housing market can avoid a collapse when I look at how much personal debt Americans have (including college graduates), and I project massive job losses so I don't know where the continued money will come from for people to pay the inflated rent unless there is some kind of basic income.