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Senior Advisor

Re: Comparing the stock market and Iowa land values: A question of timing

Comparing returns.  American airlines was trading for  23 cents per share and is now trading around $7.. Hiw is that for short term gains?

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Senior Advisor

Re: Comparing the stock market and Iowa land values: A question of timing

You're right. Some folks don't belong in the stock market. I'm one of them. I don't have the discipline or the lunacy to throw good money after bad.

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Advisor

Re: Comparing the stock market and Iowa land values: A question of timing


@pritchh wrote:

congrats--never arguing tht farm land has not boomed again..

 

will prices hold when corn hits 4?

 

and could this be another early 80s set up.

hopefully not..

 

individual situations or corse can be grand,,

many stks fm 1986 are up 20 40 60 fold..


Wanna discuss the value of the dollar since 1986 think it has been declining in value, so the increase in stocks probably has not kept up with that decline.  When most people in 2007 lost 40% of their equity in their assets (including stocks) it is hard to make the claim you make.   In addition, since that time the debt for the US went to 17 Trillion from . . . what . . . 3 trillion . . . all printed paper . . . and the GDP has been a joke.   Stocks are based upon earnings, the earnings being experienced by these companies you tout were because of cuts in jobs and downsizing operations.   

 

Today we have 44 million people standing in food stamp lines, inflation is running rampant.   Stocks are a speculators game, they are not an investments, because the trading volume has been created not by investors but pension funds and hedge funds who really have nothing at risk except their patrons money. 

 

Farmland (and I will admit Iowa is an exception) wherever it is located has value because no one else is in control of that asset but its owner.  In stocks and bonds and commodities your accounts are controlled by the Corzines of this world and the fees they rake off "first" before you are distributed a paultry profit. 

 

Name me 10 stocks that have gone up 60% from 1986 and stayed there. Then adjust them for the deflation in the dollar since that time, and take into consideration the inflation (including food and energy prices which is now excluded) during that time.  I think you will find that the only one making money in the stock market are those who can manipulate that market, i.e. like flash trading.  

 

Better yet, tell me how many of these companies made dividend distributions to their stockholders which exceeded 10% of the value of the stock during the past 10 years.  There has been too much carnage and front running in these markets for a "valid" investor to put money there.   Today the big Casino is only a place where scammers, and those who are manipulated by them (pension funds etc) congregate.  

 

All I know about land, or any "real asset" is if I own it, and I can touch it or I can stand on it, that I am not going to wake up some morning and find out that it is gone.

 

With regards to those stock companies you tout, ROI may appear extraordinary and great, but no one wants to talk about ROA (return on assets) which is at all time lows, because capital has been used to pay dividends and acquisitions instead of replacing those assets that need replacing to generate ROI.   Take the value of an acre of famland it does not have to be replaced, but machinery, computers and old technologies and research has to be. Adios Amigo. John

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Advisor

Re: Comparing the stock market and Iowa land values: A question of timing

Don't care what its worth in $. I will always have food, water and a place to stay. No piece of paper, $ or stock can provide that.
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