Allow me to explain. Just as a landlord rents out an investment property to a tenant, the same strategy has existed within the stock market since 1973. In
this case, an educated investor will receive an income rental for simply renting out their share portfolio.
However, as it stands now, millions of uneducated stockholders worldwide will simply buy shares and maintain them devoid of any rental income. This is the equivalent to a property investor having ten or twenty investment properties and maintaining them vacant, not realising they could rent out these properties all along.
As an example, let’s assume you bought shares that were valued at $20.00 each.
If you received six per cent rental for the month per share, that would equate to $1.20 in rental premium per share. Now if we calculated the real cost of the share incorporating the rental premium, you would now have the share wholesale rate of $18.80. This means the real purchase cost of share was to drop by $1.20 in price.