The Future has Inflation in it

Real estate at 100% Return

I’ve been busy recently. I have sold one of my real estate property for a ~100% gain on the investment. I have sold it because I don’t want risking my health catching the virus managing the property. Since someone offered to buy, I figured to sell. I’m not happy with a 100% return because I would rather keep the asset myself. But I can’t manage it in this environment where there’s risk of infection. Its just risk and reward.

Intrinsic value course

I’m also working double time creating the Intrinsic Value course that would teach people how I compute the intrinsic value of stocks. It is the most requested topic on our VIP chatgroup and the members asked that I create one, so I did. It’s not as complicated as most finance courses, I made it accessible for beginners to understand. If you would like to take a look, just visit the link – The Complete Intrinsic Value Course.

In order to understand the intrinsic value course, you must first learn about Fundamental Analysis.

What’s happening in the market?

Another point I want to discuss in this post is about what’s happening in the markets. The rally of the US stock market particularly the tech stocks. While everyone else was bleeding money, US stocks actually up double digits this year, carried by the tech stocks. Nobody knows if it will continue. And the FED already said that they will print “unlimited amounts of money” just to prevent the economy from crashing.

There’s a problem in that solution, though. This money they are printing, has no real value. It came from thin air. And because of QE, they are buying something of value (assets) using something with no value (printed cash).

This might prop up asset prices like what we are seeing in the stock market. But it only widens the gap of the rich and the poor. And with all of those printing, I think inflation is at hand. The people who needed the money the most has no access to it. Small businesses can’t get loans. People out of work, middle or poor class don’t have the assets that greatly benefit only the rich. Buffett already bought gold miners. And bought trading companies in Japan that trades commodities, probably indicating that inflation is coming.

What does the future look like?

In the Philippines, the government is trying to play by the FED playbook. They have increased tax on everything. They are also planning to buy stocks using printed money. They have borrowed a lot. Up more than 100% from previous year. With 60% debt to GDP. They are creating a bill that would allow banks to transfer bad loans to the government that would buy them, allowing banks to loan out more money.

Currency as we know it, is being printed all over the world at a fast pace that we have never seen before.

Because of all this, gold and silver has been on a rally. And has always been the safe haven when things go wrong. With all this money printing happening around the world, precious metals really looks like a logical bet.

Cash is definitely out of the question now. As cash has become trash as Ray Dalio puts it. Borrowing is good too. Using borrowed money to buy real assets. It is the time to invest, I think. Where to put it is the problem.

We could invest in the US buying US stocks. Or buy commodities like gold and silver as its a good inflation hedge. You can read up on my eToro review if you would like to know how to invest in the US stock market or invest in gold and silver.

You could also invest in cashflow like peer to peer lending. I have talked about SeedIn in my SeedIn review post, its one alternative.

I’ve converted some of my USD into Peso and bought some stocks. I also bought a small piece of land. And would try to be fully invested from now on. I am currently researching a PH stock right now and would make a post once I’m done.

Its been busy and will be more busy in the coming months. How are you holding up in this pandemic? I hope you are all safe. Take care!

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