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Why The Share Market?

People (quite rightly) point out to me that you can invest money n all sorts of places and often get good returns. So why (they ask) invest in the share market? Isn't that a huge risk? Couldn't you lose everything?

Yes, the share market (aka stock mrket) is a risk, but then so is everything. Even just leaving your money in the bank is a risk.

Yes, real estate has provided excellent returns (the media keeps telling us that). But here's the thing; if you invest in real estate and then you want to get your money back you have to sell it, and that can be a long and expensive process. That's after the lengthy process you went through to find the right property at the right price.  And what if there are no buyers? You are tying up a substantial amount of money for a long time. Your circumstances may change in that time and you don't have the flexibility to react quickly.

The share market allows for much quicker access to your money. Your fees are lower and you have the ability to (if your are watching carefully) jump onto a bargain quickly. And while real estate does have bargains, you can seldom jump in when others are jumping on the same bargain. The share market allows everyone to enjoy sharing in a bargain (have a look at DTR over the last 6 months).

And, if you really are passionate about real estate, there are real estate funds you can invest in on th share market.

As for banks, they are barely above inflation.

Does the share market always go up? Absolutely not. There are bubbles bursting (dot.com, etc) financial crises, pandemics (my share trading returned nothng during COVID). There's also rumours, management screw-ups and a range of other things. But I like that, it keeps it interesting.

Oh, and one other thing: You can get into the Share Market for as little as $500 (even less with those funny little apps). Try that with real estate.

Yes, people will always like the bricks and mortar of real estate, which is ully understandable. Me? I like the share market. It's fun, it's interesting, I am always forced to learn more, and it is (financially and otherwise) rewarding.

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