When it’s advantageous to hold one asset, it is disadvantageous to own another. Holding just one of anything puts you at risk.
This includes stocks, real estate, precious metals, the automotive industry and everything in between. No two things have great value at the same time.
Diversification:
Do you ever wonder why every financial analyst says to “diversify your portfolio?”
This is because like a casino, certain verticals lever up while a different one falls.
When you get close enough to the top, some will say that the loan itself is MORE valuable than the actual asset.
That’s gold. Re-read that. These are the types of conversations I have with the ones who are astute.