As the ecnomy shifts how are your protecting yourself?

4 Replies

The US has a tremendous amount of debt, as more and more people line-up to apply for unemployment this number only increases. Unemployment is higher than ever, people can't afford to pay rent or their mortgages,  many businesses are even unable to open. The US dollar is losing value, we are going through a pandemic and people like Ray Dalio are predicting that we will see widespread deflation in the near future. This not to mention that a war with China isn't inconceivable. 

With all of this happening, it's hard not to just scream out loud - "THE SKY IS FALLING, EVERYBODY RUN!" 

So I'm curious to learn what some of the other, more experienced investors are doing in order to hedge your portfolios and reduce your risk? 2008 is the most recent comparable market correction, but I'm sure there are other people like myself, who were still in high school during that period and perhaps didn't really feel the full effects that 2008 had on the average person and investor.

I've been looking for multi-family properties in MO and there are no deals on commercial multi-family (there are seriously $650,000 multi-family properties for sale bringing in a paltry $4000 a month in rent - no, thanks) so I'll be patient.

I moved to Missouri and am selling my house in Los Angeles for stupid money (went into escrow today), and will be stacking cash and waiting for it to hit the fan to whatever degree it occurs. 

Holding all my multi-family properties in my PA market because they're not giving me headaches and are bringing in good rental income. 

I'll buy when I see blood in the water and the numbers are good; I would be shocked if things dropped down to anything near 2008 numbers the next handful of years but a correction is certain in many markets, IMO. 

I've also been buying precious metal stocks since December of 2018 - didn't put a great deal of money into it but they've given me good returns. Silver has gone up 51.28% the past 30 days which is pretty wild - I'm amazed the stock market has chugged to almost 27,500 again after that correction - I know the money printing plays a part; I find the bull market to be overdone. 

@Matt Bucklaew Slow and steady wins the race when it comes to real estate. Stick to your rules of thumb and all will be fine. Unless you are getting in to politics and want to change the world, keeping your head down in real estate will still help you generate wealth. I'm not saying to keep your head in the sand, I am saying to keep chugging away and having confidence in your investment decisions without overreacting.

Be smart, have an exit , if things get CRAZY!!!!

Everyone needs a roof over their heads!  

Interest rates are so low.

Vote very smart, no one knows why (Covid) is so Craxy,   Swine Flu was so much worse!!

Didn't even get second page on most newspapers!

Move forward with caution!!   

Have different plans for your business in the next 100 days.

  Section 8 will always pay rent, etc, etc,

Hopefully our President will keep us free, out of major debt, and continuing to deal with this CIVID

b.s.