It is obviously an exaggeration, but it serves as a starting point to examine our beliefs about the favorite destinations of our savings.
Let’s start with the dollar, here the mantra is “the dollar always goes up“.
let’s play The first image that appears when you google “justice” is that of the bandaged woman holding that scale with the saucers hanging in perfect balance; We are going to use that scale. Now let’s assume that this balance measures the worth of things instead of their weight. In one of the saucers we put a $1 bill, in the other a gram of rice, and it turns out that they are balanced (a gram of rice is worth $1). What happens to that balance if we add another gram of rice? whatraise the dollar Or does the rice dish go down (lose value) because we double the amount? Option B.
The point I want to illustrate is that the dollar does not have any anti-gravitational properties that make it levitate towards the atmosphere; the dollar does not rise. It gives us that impression because we look at it from a saucer that does not stop falling, more and more full of pesos. That collapse in value of our currency (measured in dollars or packets of yerba) is what explains our allergy to pesos when we think about taking care of our savings. The peso fails as an instrument to safeguard value.
Now, the dollar also loses value, and although it does so more slowly than the peso, the result is the same: we will buy fewer things with the same money. Accumulating dollars (in an account or in a can) does not multiply the bills, you have to put them to work.
Let’s move on to the bricks, here the credo is “the value of a property increases over time“.
The real estate market is not my thing, but instead of talking about the worth of a property we speak of its pricethe issue is complicated.
Let’s simplify, the price the coffee I’m drinking is $700, it’s on the menu, it’s the same for everyone. Now the value of this coffee changes according to the preferences and circumstances whoever takes it (if you like it strong or light, or how sleepy you are). The important is that the value is assigned by each one of usIt doesn’t come on the menu. Precisely for this reason, to agree, it is better to talk about prices.
Let’s go back to the properties then. Which is the price from yours? Where does she come from? There is no screen that tells you. It also doesn’t update instantly if your power goes out or the corner plaza is upgraded. And without a price, how do you know if it was a good investment?
The properties do not have a reference price like soybeans for example, the best we have are qualified opinions of the appraisers. And it gets even more complicated because no two properties are the same. Two identical apartments in the same building they are not worth the same if one is front and the other rear. Or if to an owner he would like sell and the other needs do it.
So, a property has as many “prices” as potential buyersbut the only one that counts is the one in which buyer and seller coincide.
In short, neither the dollar nor the bricks are going to magically save us. The dollar does not rise like a balloon with helium and the only price that a property has is the one at which the operation is completed, the rest are opinions.
Investing in the financial market is going one step further because we put to work the money and there is a price constantly. If you are interested in knowing how to get started, I am available through Instagram (@nr.asesorfinanciero), LinkedIn (Nicolás Rampinini) or my page (nrampinini.com). Let’s talk.
by CEDOC
