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| Stocks and land are for those optimistic that future earnings will be better than the present. A future devalued currency as well as opportunity cost plays into the decision as well. Seems like the author suggests right now the market is chasing the past few year's good returns, meaning she thinks this is more an emotional market than rational one. She didn't come out and say that, she said insane. Farmland appears moderately overvalued doesn't get as many clicks though does it?
Any out there thinking the next 30 year's we hardly ever see $4.60+ corn with anemic yield growth, then I 100% agree with the author, land isn't for you. You need to be more optimistic than that to be a buyer. Anyone buying, you must have a plan to make $3.50 corn work too or you should also steer clear. | |
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Kubs Den “ INSANITY OF PAYING 7% ON AN ASSET (FARMLAND) THAT ONLY EARNS 2%”
