My goal in this article is to help you make more money and improve your personal finances. How do you become a millionaire? There are many ways to achieve this: invest in the stock market, become a stock trader, invest in real estate, or why not become an entrepreneur? But whether you are interested in how to invest in stocks or investment strategies to generate passive income from rental properties, I hope I can give you a solution (or at least an idea) here. The greatest investor of our time says to fill your mind with competing ideas and then see what makes sense to you. This article is about filling your mind with these ideas. And in the process - upgrade your earning tool set. The worst and best investments for an inflationary economy are, in my opinion.
These investments will be divided into five categories and presented in chronological order
In a framework that will be called
"Investor protection against inflation pyramid".
Yes, the name is a work in progress.
This is the Swedish investor, bringing you the best tips and tools to achieve financial freedom
Through stock investing.
Okay, at the bottom of the pyramid, the worst of the five investments to own during
Times of inflation are these:
Assets denominated in a currency
Perhaps this was not such a big surprise.
In an inflationary environment, of course, the currency is the worst asset you can own
That Gets Blown Up.
Money that is in a bank account or hidden under your mattress is eaten away.
Month after month, week after week, day after day.
You need a bigger boat.
So if we expect dollar inflation, we don't want to keep dollars in our portfolios.
It becomes like an old girl's game once you've played that, nobody wants to be on the losing card.
Bonds issued by governments or companies with inflated currency coupons
Will also have a hard time.
If I lend you $100, and I say you get $10 a year for it
And your full $100 back in year 10 may not sound like such a bad deal,
That's an annual return of 10%!
However, if we close this deal and there is 10% inflation in the dollar,
Which, by the way, is not at all impossible,
It happened in the 70s and '80s,
Then you will not make a return on the deal in fair value.
If we were to drop $1 million in cash into every household in the United States today,
Everyone would feel really good except the people who invested in things
That was expressed in dollars.
Next on our list, we have:
Non-productive assets
This includes assets such as art, a house, gold, etc.
These assets are not useless to own in times of inflation, as all else is equal,
They have to keep their real value.
However, they won't increase your purchasing power either, that's why they don't end
Higher in the pyramid than this,
If you take all the gold in the world?
- Now don't get too excited - and put it in a cube, it will become a cube
That's about 67 feet on one side.
So you could have a cube - if you had all the gold in the world
- You could have a cube that would be 67 or 68 feet on a side, and you could get a ladder
And you could climb on top of it, and you could say, you know I'm on top of the world.
I am the king of the world!
You know, you could caress it, you could brush it,
You could do all these things with it.
Stare at it.
But it's not going to do anything.
It's the same with all unproductive assets.
In 10 years, that rare painting will still be a rare painting.
It will never multiply,
What the investments that appear higher in the pyramid can do over time?
If you want to do more than just continue your purchasing power with unproductive assets
You will have to do something that is very difficult - you will have to do it
Predict how afraid of people will be of inflation in the future.
Actually, it's even more complicated than that.
A little game will help you realize why this is a difficult undertaking.
Here are pictures of 5 different, I would say, quite attractive people.
I'm going to ask you a favor.
I want you to scroll down to the comment section (without cheating!) and mention which of these 5
That you think most people will respond is all the more appealing.
You win if you say the number that most other people agree with.
To respond, a number from 1-5 to whoever you think
The fact that most people will respond is all the more attractive
Pause the video and do it now.
Magic mirror on the wall, who is the prettiest of them all?
You will realize that this is much more difficult than it seems at first glance.
You can't really respond to who you think is the most attractive because it isn't
What's important, it's the average of what other people think.
And it doesn't stop there
You must be logged in to post a comment.