With Falling Markets, where should one put their money?


   I have been studying markets lately and by no means am I smart at them, I have however learned and read what the more successful and professionals are doing and suggest. You would not see this on TV or in the Newspapers, then again, I'm not much on main stream media. We must remember that TV is for amusement, to muse is to think and to be amused is not to think, TV is for entertainment only. This was well demonstrated for those who watched Crammer of Mad Money with his Bear Stearns miss and overacting   This is Entertainment, not News.

 

   Now the same people that brought you this, also told the public to invest in stocks rather than real estate, and many people did. At this point, one would say that since I sell real estate that is why I'm saying this, yet there is proof that I have when I'm saying this. So what is different?

  Money is fiat currency, that means it is created from thin air and only has what value is attributed to it, which can be changed. Fiat money is based on debt. Notice the word money, money is completely different than wealth. Real wealth has nothing to do with what we call money because money is based on fiat currency, that is, it is created from virtually thin air. Wealth however is completely different as wealth is based on a resource that is limited, liquidable, and tangible. Precious metals, oil, and food, while plenty exists that have been unprocessed, it is limited as to how much is available because it can not be created from thin air, ie, it is tangible, liquidable, and limited in either what is available or what can be reasonably stored. Raw real estate is a tangible, limited asset. Like metals, there is a limited by nature amount available and with the exception of Dubai creating the island, that is rare.

  True wealth is useable raw property and houses, more so raw property than houses due to upkeep and trends. It is not property that is unusable for practical purposes, like say the side of a bluff. Property is much like gold or other precious metals which are pretty stable unless falsely driven up. While one can't before independently become wealthy overnight in the usual sense, the steady stream of worth makes it very attractive unless property taxes are out of line. Think of that before asking for all these services. I am reminded of what a friend once said were stated to him about an ounce of gold by an old man. One ounce of gold would but a finely tailored suit 50 years ago and that same ounce of gold will still buy that suit, only the suits have increased. This would make gold very attractive if it were not for gold was once called up by the federal government once already in the past Executive Order 6102, and it could be again.

   Unless you get lucky or have inside information, you are probably not going to be the next Donald Trump, then again, that is another story. Thing is, land will (unless overinflated or drastically changed), grows steadily in value. Land is a strong, solid, tangible, liquidable asset. Yes, it does take a while to sell it at market price yet when my wife took out her 401K, it also took her a while, plus she was penalized. That, in and of itself, is laughable. To think one pays a penalty for using one's own money. Even more absurd is handing part of hard earned pay to someone that merely shows you a "plan", not individual companies. That would be like calling Detroit and ordering transportation without specifying what kind, color, model, and make. The taxes on land are deductible on the Income Taxes, so that is a wash, not a loss.

   Most money made from Wall Street is not so much as in the stocks but rather the gambling of what stocks will do. This was outlawed once after causing the crash in 1840, brought back into effect about 10 years ago. For a while, TV News people (joke) have endorsed buying stock over real estate. So called "experts", better known as actors, have seduced people into giving Wall Street their money and warned against real estate. Even real estate that was overvalued and lost fifty percent as the prices readjusted pale in comparison to the losses of stocks, and this is just the start. Thing is, those that owned real property at least had something left to liquidate, those who lost in the market had nothing to liquidate because they had nothing to begin with. It came out of thin air, and so it retuned.   

  Money in a safe savings plan at a bank simply just doesn't pay. Usually two percent is about average, yet given the inflation rate (counting food and fuel which is omitted), it is about 10-12%. Already that is a net loss. If inflation does as most suspect and becomes double digit...well, you can do that math. Only raw land will sustain it's value. It may fluctuate a bit if in inflated markets, stable in regular markets, either way, it will not be losing at a constant pace as a savings rate does. That is not to say that one should go overboard in debt to attain true wealth, land.  

  Now I could have easily said, invest in real-estate, and you would say, "Oh course he says that, he sells real estate." Now what I have covered is just the surface, and lightly at that. By all means, research the information yourself. Hint: It will not be found on corporate owned TV. For those wishing to ride this out, I hope that I am wrong, but this isn't a bump in the road. What you are now looking at is the Abyss, not the end nor the middle, it is just getting started and when it does, God help us all. This is not based on conspiracy theories, just a few facts. What I base the rest of the info on I haven't spoke of or what I see in the coming days requires far more information than this. 

Just My 2 Cents,

Anthony