If you bought a house in the 1980's for $100,000, someone will tell you it is worth $210,000 in 2007. That money majically appeared.
In late 2008 now, someone will tell you that same house is worth $120,000.
Somewhere along the way, you made $20,000 - the house is valued that much more now than when you bought it. BUT, if you tried to take out a loan in 2005 or so and spend the $110,000 you might think you lost $$80,000, and now you are short on money!
In fact, the whole time, you didn't have any cash at all - you had a house.
Stocks work kinda the same way.
None of this is cash, but we try to convert it to cash at different times. This makes money 'appear' and 'disappear' at different times.
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Today's Featured Article - Madison's County - by Anthony West. Philip Madison has been a good friend of mine for quite some time. He has patiently suffered my incessant chit chat on the subject of tractors for longer than I care to remember, and on many occasions he has put himself out, dropped what ever it was he was doing, to come and lend a hand cranking handles, or loading a find onto a trailer. Although he himself has never actually owned or restored a tractor, he was always enthusiastic and always around helping with other peoples projects.
... [Read Article]
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1965 International Harvester McCormick Farmall cub tractor 2,500. Two owner tractor. My grandfather bought new in 1966, then we inherited it. Have all the paperwork original manual and all maintenance records. It starts and moves. Comes with underbelly mower, plough, and some other attachments.
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