When you “own” a stock, do you really own it?
In reality you own a piece of paper that says you own a portion of a company.
And that company’s ability to honor that piece of paper is what makes the value of that paper go up or down.
Sometimes that paper becomes totally worthless.
It’s not like owning a car – which in most cases – is a depreciating asset.
Unfortunately, most people have cars out of necessity to travel from point A to point B on a regular basis.
This begs the question of why own a car (depreciating asset) when you can lease one? …Especially when the price of most cars today is astronomical compared to the past.
You can apply the same principal to real estate when you rent/lease a property with an option to buy it.
So, can you do the same with stocks?
Absolutely.
But why would you?
It’s simple, but you must first adopt a mindset that’s different from the traditional “buy and hold stocks forever” way of thinking.
Stocks are currently at historical all-time highs. But that doesn’t mean they’re going to crash.
However, if you adopt the “leasing mentality” of stocks you’ll most likely get better results than the average investor…especially in turbulent times.
Why?
How many times have you – or someone you know – watched your stocks go waaaayyyy up in a good market, felt pretty good about your investment genius, and then watched them go back down to what you paid for them…and eventually go below what you paid for them?
Ouch!
Did I just step on someone’s toes here?
Don’t feel bad.
Anyone – and almost everyone – who’s invested in the stock market has experienced the same results.
That’s why we share our combined 109+ years of experience on Wall Street with you in daily emails.
However, if you want to learn more in-depth knowledge/experience of how to invest, you must read our Short and Sweet Tips column in our monthly newsletter.
In fact, in November’s issue we’ll show you the easiest way to hedge your stock portfolio from turbulent times.
It’s so simple you’ll need someone to help you misunderstand it.
When you join our “…In Plain English” group (HERE), you’ll get complete access to our archives of Short and Sweet Tips along with our wealth of knowledge of how Wall Street operates behind the curtain.
It’s Not Just About Finance. It’s about your future.
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