What do you invest in when everything is over valued?

80 Replies

Originally posted by @Gordon Forbes :

What do you invest in when all the cyclical investments seem to peak at once?

In my humble opinion:

Real estate is due for a correction.

The stock market is due for a big correction. 

Every currency is on shaky ground.

Precious metals no longer seem to be the contrarian investment.

Crypotocurrencies are just too new to know which ones will have a future.

Inflation or hyperinflation is a real possibility so sitting in cash is suicide.

If everything goes really really bad then the only universal form of "monetary" exchange will be canned food and shotgun shells. I'm not enough of a doomsday prepper to go that far.

So what does that leave?

Does one diversify so that when 9 out 10 investments tank one has enough left over to buy Scotch and wallow in drunken misery? (Ok, perhaps that's a little too pessimistic).

It's just when I look at my portfolio I think "man, I should sell that (real estate, stocks, forex, metals) before it drops like a rock" and then do what with the money?

Is everything overvalued?

I don't think so. I think the stock market, and real estate is on the high side of fair valuation, but I wouldn't call them "overvalued".  Outside of a black swan event, there isn't any reason to think that things

I do feel like debt prices are significantly overvalued, if anything we might well see significant increase in inflation and interest rates over the next 20 years or so.  And if so hard assets like real estate should profit handsomely.  At least for those who have long term amortizing fixed rate  debt on their properties.

When in doubt invest in your self by learning a new skill and/or strengthen your balance sheet etc.

Hello Gordon!  That is a good question and you chose the right place to ask it.  Based on my experience and age I would tend to say your question is apartment investing for a long term investment and buy one that gives you a positive cash flow from day 1.  People will always need to have a place to live and apartments are less or temporary for most Tenants.  Screening is very important on top of good maintenance and customer service.   Do not count on anything will happen that has to do with the future.  Always evaluate based on the worst case scenario.  The experience needed saying about apartments is a myth and apartments can take empty units much better.  It's value will increase more for every dollar spent because of the cap rate.  Even though I am not speaking based on my investment experience, I have about 30 years of construction and real estate brokerage licensure in Texas.  I hope this helped you.  Good luck to you!

Originally posted by @Gordon Forbes :

What do you invest in when all the cyclical investments seem to peak at once?

In my humble opinion:

Real estate is due for a correction.

The stock market is due for a big correction. 

Every currency is on shaky ground.

Precious metals no longer seem to be the contrarian investment.

Crypotocurrencies are just too new to know which ones will have a future.

Inflation or hyperinflation is a real possibility so sitting in cash is suicide.

If everything goes really really bad then the only universal form of "monetary" exchange will be canned food and shotgun shells. I'm not enough of a doomsday prepper to go that far.

So what does that leave?

Does one diversify so that when 9 out 10 investments tank one has enough left over to buy Scotch and wallow in drunken misery? (Ok, perhaps that's a little too pessimistic).

It's just when I look at my portfolio I think "man, I should sell that (real estate, stocks, forex, metals) before it drops like a rock" and then do what with the money?

 If you believe hyperinflation/inflation is real possibility find those sectors  that will do well in that environment.  Next, every real estate market is not the same.  What markets are poised to grow no matter what.  Population growth is still destiny.

I'm diversified between stocks, bonds, real estate, healthcare industry, and a little crypto (specifically blockchain).  I also took a leap into a new venture and got a great return investing in a banana plantation where I live in the Philippines as an American expat.   Contracted buyer bought everything I could grow at a set price regardless how the market was doing.  It was win-win for me.

Originally posted by @Matthew McNeil :

I'm diversified between stocks, bonds, real estate, healthcare industry, and a little crypto (specifically blockchain).  I also took a leap into a new venture and got a great return investing in a banana plantation where I live in the Philippines as an American expat.   Contracted buyer bought everything I could grow at a set price regardless how the market was doing.  It was win-win for me.

I'm a big fan of Blockchain myself 

Had a decent mineral fund investment in an oil deal go well recently

There are always deals to be had, you just to know the right people and they will present "the right" opportunities

Much success

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.