Investing In Facebook Stock or Real Estate

Think you should invest in FaceBook? Not So Fast!

I am sure you have all heard, FaceBook had its IPO this week bringing one of the most cutting edge companies into the public stock market. $100,000,000,000 was the estimated value of the website which makes it worth more than Disney. Really??? Worth more than Disney? Sounds a bit ridiculous if you ask me, a single website that people will surely get bored of within the next 5 to 10 years and that 100 billion will be 12 million just like the ancient MySpace. I really have no idea if Facebook is a good investment or not but I figured if everyone is going to throw around those 100 billion dollar numbers then we should be actually talking about something of REAL value.

So what should you invest your money in then? I am not an investment advisor or tax accountant so the following is just my educated opinion with some fancy stats and charts to look at. Let’s first look at this chart and see what it tells me:

I see a rise and fall every 10 years or so. Look at 1978, the prices shot up then again in 1988, and 1998 the prices rose steadily for about 6 years and they finally dropped back down to the original starting point in 1998. We have hit below the trend line and are starting the way back up slowly. The spike will probably not come for another couple years but the time to buy is now while we are still on that little blue trend line.

How about this chart showing all the way back to the 1800’s. Take notice what happens every time the spike drops…… It goes back up.

Now I’m no rocket surgeon but I am pretty sure these charts are telling us it is time to BUY REAL ESTATE.

And finally here is proof that we are recovering from the latest economic downturn. Since last year we have had double digit increases in at least 10 different markets.

City /ST– Year over Year Increase

1. Miami, FL 32.75%
2. Fort Myers-Cape Coral, FL 21.00%
3. Punta Gorda, FL 19.33%
4. West Palm Beach-Boca Raton, FL 18.60%
5. Boise City, ID 18.15%
6. Sarasota-Bradenton, FL 17.18%
7. Phoenix-Mesa, AZ 16.90%
8. Daytona Beach, FL 15.91%
9. Naples, FL 15.87%
10. Washington, DC-MD-VA-WV(DC) 15.48%