We don’t dedicate so much time on this blog to talk of inflation just because we like the the way the word looks on the computer screen. Inflation is serious business for everyone and, probably more than any other single factor, will be responsible for the decline of American wealth in the future. We hate to see hard working people reach retirement with a portfolio full of shattered Wall Street dreams. The so-called Golden Years aren’t the time to work part-time at a job you hate to make ends meet.
The problem is that the average person’s grasp on the concept of inflation is shaky. Not your fault. The government does its dead level best to obfuscate the issue, and divert attention from the fact that they are creating inflation at a pace far exceeding what they will admit to. This is why you need to understand Packaged Commodity Investing, which is simply another word for real estate, though we like to refer to it as income property investing.
Here are the basics to keep in mind when planning your investments. Inflation devalues a nation’s currency AND all investments associated with it, like stocks, bonds, and mutual funds. It’s a safe bet that inflation will be an economic factor on the world stage going forward; even China, a heavily manipulated economy, is beginning to feel the bite. Your only real hope to maintain or improve your financial situation is to invest in something NOT tied to currency but rather tied to commodities, such as income property. A piece of real estate is Packaged Commodity Investing defined. After all, what is a piece of property with a structure on it or, in the case of a mobile home park, a whole bunch of structures on it, except a collection of basic commodities like wood, steel, aluminum, copper, etc.?
Commodities hold their own and actually gain value in the face of inflation because they are tangible evidence of value, unlike a currency that is back by only by the hot air promises of generations of politicians. We’re not sure about you but we’d choose Packaged Commodity Investing every time.
The Commercial Investing Center Team
Flickr / Liz Henry