There is a great article in Forbes this month about brokerage fee problems associated with buying and selling stocks. “Bum Wrap” is a fascinating article and seems to confirm what many of us have believed in the past about heavy fees associated with asset management, buying and selling stocks. Fee-based brokerage accounts are supposed to be a financial boon to investors, but a financial boon to stock brokers is more like it. The article discusses problems associated with large companies urging stock brokers to sell their portfolio items further profiting from their customers.
This seems to be another very solid reason why real estate is the obvious play at this point. Inflation seems to be imminent and with that comes talk of potentially higher capital gains taxes.
Interest rates are at historical lows, prices have bottomed and real estate is a tangible asset and the best hedge against inflation. Borrowing cheap money to finance the purchase of under-valued real estate just in time to watch the market bounce back seems like an obvious choice.
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