Park your wealth in real money

On April 24, 2016 by Phil Champagne

We have been asked if there are new properties coming in our portfolio soon. I regret to say none at the moment, the market is too frothy to find proper deals that pencils out. As you know, the Fed funds rate is between 0% and 0.25% and as been in this range since 2009 – a first time in history of this country, and likely of the world. This has again fueled a new bubble in a variety of assets, and everybody is looking for any kind of decent yield – which is getting rarer and rarer. However, we could possibly find something quite interesting very soon. If so, we will get in touch with our investors.

So what do we recommend you do with your liquid wealth right now? When all asset classes that derived their growth from low interest rate are too frothy, you need to consider asset classes that are on the opposite side. When interest rate keeps going down just as it did since the early 1980s, what is the asset class that does not benefit from that environment… Obviously, the stock market is based on growth of companies using leverage which benefits when interest rates keeps going down. The same obviously applies to real estate. So, I recommend you invest in the physical variant of 2 elements listed in the periodic table, stored and secured by professional non-banking institutions.

 

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