Even after all the turmoil affecting home ownership in recent years Americans still see houses as a safe investment.
A new Harris Poll found that more than seven in ten Americans (72%) still consider owning a home to be a safe investment, while 68% think that owning stocks and bonds is a bit risky.
Older folks are the most likely to view homes as safe, with 89% of Matures telling Harris that home ownership was a safe investment, as opposed to 77% of Baby Boomers and 70% of Gen Xers.
It’s hard not to love houses, and to feel safe with them. Neither bubbles nor grand financial crises can sway us from our ingrained sense of homey-ness. All of that makes sense. After all, you can’t raise a kid in a stock portfolio, right? You can carry your new bride across the threshold of a derivative.
However, this doesn’t explain why large majorities of Americans also see gold (65%) and jewelry (59%) as safe investments. Sure, these things are also tangible, like houses, but they can be volatile areas to invest in.
Maybe these findings prove the point that investing really isn’t a rational thing. Houses hold sentimental power, while gold is a beautiful substance you can hold in your hand.
It’s worth pointing out that the stock market – treacherous as it can be – has in fact out-performed most other investment choices in recent years. But the stock market’s fate can change on a dime, and that mean old market won’t keep you warm and dry on a cold night.
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