Happy Canada Day / GDP

Nowadays and especially during the Covid 19 pandemic, what is attracting the most attention of people to make money is to invest in either real estate or in the stock market.?

One of the reasons that may cause that is fear of missing out. Fear of missing out is considered to be the feeling of anxiety that comes from the realization that we may be missing out on rewarding experiences that others are having.?

If you observe people around you, you may see many of them investing their money in real estate or the stock market without having any knowledge or experience about it just because “everyone” is investing in such fields.

The activities of realtors attract those who are thinking of having a high-profit business. People are attracted to these artificial markets and spend their cash in to buy a house even though this is not a high-profit investment nor it helps the housing crisis. Most of those who buy houses these days do not live in those houses because it is one of the several houses that they purchase.?

The numerous realtor advertisements that you see around the city only cause tension in the market that ends with an increase in the prices of real estate.?

Every time you scroll down on your cellphone in social media, you’re bombarded with ads of realtors and hedge-funds. They create tension in the market and they induce that they are the only ones that have the knowledge to manage the money so people trust them and hand out their money to them.?

Why would official bodies support such tension? Why would they announce that 80 percent of manufacturers claim bankruptcy and only 20 percent of investors in real estate go bankrupt? How many percent of the other 80 percent of real estate buyers reside in those houses and how many percent only invest to create a tension to increase the prices?

Some realtors claim that they have sold 100 or 200 million dollars of properties in a few months and even some claim that they have sold more than 20 houses in fewer than three months. There is a question that are these properties sold to those who use them and if yes why most people do not own any properties and are tenants and the housing crisis is not solved yet.

Now let us review the stock market and see why investing in that is not a completely right decision.?

To answer this question we need to see what the essential goal of the stock market is and what institutions make the most profit out of it because at first, it looks very easy to make money in a way that you buy some stock today, the price of the stock you hold increases and you will sell it. The goal of a hedge fund is to make maximum profit for itself and the companies which it stuck is in the market are the puppets of hedge-funds.?

In addition, competing with such funds is very difficult. They are equipped with the most up-to-date data analyst tools and their unlimited money lets them do bigger risks.?

Overall, lack of knowledge and access to data is the biggest risk for those who want to invest in the stock market.?

The companies whose stock is available in the market to need to know that their success is not important for the hedge funds. What matters the most for hedge funds is to make the most profit out of people’s money even though it ends up ruining many people’s jobs and capital.?

Investing in production can be more beneficial than keeping money in the stock market for the long term. Having your money back is not guaranteed in such a market and what happened in the past is not an accurate way of success in the future. Sometimes a tweet from Elon Mask causes an increase in one company stuck or when Cristiano Ronaldo prefers to drink water instead of Coke causes a huge decrease in Cocacola’s value.?