It’s time to tell the truth. As uncomfortable as it may be.
Inflation is not transitory.
I repeat inflation is not transitory.
Do not believe the corporate media’s perspective on the matter.
They’re wrong.
The United States has a self-styled “expert” class that has grown more incompetent over the years. This is why people should always remain skeptical about what they say on all matters that concern economics.
Inflation is here to stay thanks to the easy money and flawed regulatory policies. Easy money facilitates large amounts of money printing, while a burdensome state impedes economic activity.
This double whammy of loose money and high regulation creates stagflation, where there’s slow economic growth, if not wholesale declines in economic growth, while inflation climbs upward.
A toxic economic combination.
That’s how things are going to play out in the US and many other Western countries.
However, the US dollar aka King Dollar is not going anywhere.
Just look at what’s happening with the euro relative to the dollar. The euro has recently reached parity with the dollar for the first time in two decades.
This goes to show that American hegemony, both in military and economic terms, is not going away.
Remember the Jason Hartman question… “Compared to what?”
You see, while the US government is pursuing many wacky monetary and regulatory policies, many other countries are doing the same. Some are taking it to the next level.
The EU is notorious for its green energy policies that have made it dangerously dependent on Russian oil and gas. So when the EU decided to wage a sanctions war against Russia after it invaded Ukraine, it basically performed an economic own goal.
The US, which has relatively saner energy policies, has not been as impacted by the energy shocks that have resulted in the wake of the Russian invasion of Ukraine.
It also doesn’t help that the EU has very high taxation and regulation, thereby making its economic predicament even worse.
All in all, Americans should be thankful for living in a polity that features federalism — a system that promotes jurisdictional competition — and that has such a strong pro-business culture.
Most countries in the globe don’t possess such advantages.
For income property investors this is a god-send.
You see, the US has very strong property rights. Unlike many other countries, it’s incredibly difficult for the government to seize property in America.
So when you purchase a house for investment purposes, you don’t have to worry about having your property seized by greedy politicians or bureaucrats.
Now, you’ll have to put up with property taxes, pro-tenant laws, and some annoying regulations. However, those problems can still be circumvented.
Remember, that federalist system I mentioned?
There are plenty of states, especially in the Sun Belt, that are much friendlier to landlords. Those are the states where you should be investing in. Especially in the linear markets.
Keep in mind that America does not have one major real estate market. There are multiple markets that vary in terms of housing units, prices, regulatory frameworks, etc.
Some of these markets will be very volatile in terms of prices, which results in investors receiving sporading cash flows.
Other markets will be humbler but much more stable, as seen with their more reliable cash flows.
The latter markets are the linear markets where you should be investing in.
Ignore the flashy cyclical markets the corporate media and the self-style experts talk about.
With inflation all in our face, savvy investors will have to prepare accordingly.
Real estate is the most tax-favored asset class and is also one of the most reliable hedges against inflation.
Irrespective of the economic conditions, people will always need housing.
That’s why housing is such a safe bet when it comes to investing.
Now, I will caveat this by noting that you should try to be investing in linear markets where the prices are steady and you’re able to generate stable cash flows over time.
In this real estate game, slow and steady will win you the race.
I’m not going to sugarcoat it, we have rough economic times ahead as inflation becomes a normal part of economic life.
As a result, many people who use conventional wealth-building strategies will watch their savings get eaten away.
Those who are in the real estate game know all too well that mortgage debt is actually an asset during times of inflation.
Inflation benefits debtors by making the debt burden they have to pay off much lighter.
Those who have fixed-rate mortgages benefit from this dynamic enormously.
While inflation hurts a lot of people, those who know the ins-and-outs of income property investing will benefit handsomely from inflation-induced debt destruction.
But that’s a whole nother can of worms.
Anyways, check out this video “Long Inflation Cycle Ahead: Here’s Why | Patrick Ceresna, MacroVoices” to learn why inflation will be around for a while.
P.S. Want to kick inflation’s teeth in? Make sure to check out the Empowered Investor Pro.
It’s the #1 community of like-minded investors who have been there and done it.
Their accumulated experience and strategies will be available to you… but only if you take the leap and join Empowered Investor Pro.
Defeat inflation and grow your wealth here.
