FINANCIAL MARKETS MAY CRUMBLE BUT REAL ESTATE NEVER GOES TO ZERO

All calm was lost last week on Wall Street and in the world financial markets. One would do well to revisit traditional wisdom in these panic stricken times. Such traditional wisdoms include the following:

• Paper gains and losses mean nothing unless and until one sells.
• Don’t sell when the market is down unless you absolutely need the money.
• Remember: investing in financial instruments requires long range thinking.
• Markets fluctuate. When they go down, they always go back up.
• Calmness and patience are critical attributes when investing.
• In the midst of apparent adversity comes opportunity.

It is also timely to point out that while financial investments have no tangible value other than as a wealth building tool, real estate has very tangible value. Bad financial investments can be relegated to the status of wall paper. While real estate values can and do fluctuate as well, they never go to zero. Underneath everything is the land and it never goes away.

Those who focus on the negatives of the current situation and allow themselves to become caught up in the fear will most likely make bad decisions and create bad experiences for themselves. Those who follow the above traditional wisdoms and act on the opportunities in both the financial markets and the real estate markets will do well.