The bond market is toast (like a 2 week dead body in the spare bedroom no one wants to deal with). Equities are not far behind if you haven't been watching. They have to park that money someplace else ... ergo, real estate. It's actually genius. A rental home is a defacto bond. It has a coupon rate - interest rate (monthly rents), face value (purchase price), but no 'maturity' time variable ... which is the genius part. Most bonds have a maturity date where the bond will no longer pay interest. At that point it's just cash under your bed. Property however can last 100 years if well maintained.
They are turning the US housing market into the next investment vehicle market ... a De facto Bond market. They can drive up prices to muscle out new home buyers without a second thought. It's easy when you manage 8 Trillion in assets.
When you mention the bond market I have a few questions. I believe my parents are heavily invested in bonds with their old financial advisor. I've tried very hard to guide and wake up my family in these areas but I have little understanding with bonds. Is there anything I could say to get their attention? If the bond market goes under I'm assuming so will their investments? It blows my mind that financial advisors just continue to take their commissions and not guide them.
I'm a huge advocate for precious metals especially gold/silver. Been trying to get my Dad and family to take a small investment but they laugh it off. Funny how a good family friend owns an LCS and they still won't buy any. Got my lil bro invested but had to buy it for him. Anyways, I appreciate your time anon!
God bless
First, Im not a financial advisor. I do have an MBA and have studied markets EXTENSIVELY. Second, ur question about the bonds depends on WHAT KIND of bonds. There are all kinds … treasury, corporate, municipal, cds … they all have a’rating’ (A+ Thru F). The worse the rating, the higher risk but better interest (in theory). Not likely they own junk bonds. They wont ‘loose it all’. But if their interest rate is for shit (2-3%) as most existing bonds are, when rates start going up, the value of those bonds with garbage low rates will drop. Its inverse relationship.
Last year I liquidated ALL my stocks, CDs, IRA, mutual funds and bought a $3000 safe and started filling it with Silver
That's crazy, in europe you have homes that are up from the 1600s, but building from stone vs building from plywood, pine 2x4 (1.5 X 3.5) and tar shingles shouldn't be expected to last.
That is EXACTLY what they are doing.
The bond market is toast (like a 2 week dead body in the spare bedroom no one wants to deal with). Equities are not far behind if you haven't been watching. They have to park that money someplace else ... ergo, real estate. It's actually genius. A rental home is a defacto bond. It has a coupon rate - interest rate (monthly rents), face value (purchase price), but no 'maturity' time variable ... which is the genius part. Most bonds have a maturity date where the bond will no longer pay interest. At that point it's just cash under your bed. Property however can last 100 years if well maintained.
They are turning the US housing market into the next investment vehicle market ... a De facto Bond market. They can drive up prices to muscle out new home buyers without a second thought. It's easy when you manage 8 Trillion in assets.
When you mention the bond market I have a few questions. I believe my parents are heavily invested in bonds with their old financial advisor. I've tried very hard to guide and wake up my family in these areas but I have little understanding with bonds. Is there anything I could say to get their attention? If the bond market goes under I'm assuming so will their investments? It blows my mind that financial advisors just continue to take their commissions and not guide them.
I'm a huge advocate for precious metals especially gold/silver. Been trying to get my Dad and family to take a small investment but they laugh it off. Funny how a good family friend owns an LCS and they still won't buy any. Got my lil bro invested but had to buy it for him. Anyways, I appreciate your time anon!
God bless
First, Im not a financial advisor. I do have an MBA and have studied markets EXTENSIVELY. Second, ur question about the bonds depends on WHAT KIND of bonds. There are all kinds … treasury, corporate, municipal, cds … they all have a’rating’ (A+ Thru F). The worse the rating, the higher risk but better interest (in theory). Not likely they own junk bonds. They wont ‘loose it all’. But if their interest rate is for shit (2-3%) as most existing bonds are, when rates start going up, the value of those bonds with garbage low rates will drop. Its inverse relationship.
Last year I liquidated ALL my stocks, CDs, IRA, mutual funds and bought a $3000 safe and started filling it with Silver
That's crazy, in europe you have homes that are up from the 1600s, but building from stone vs building from plywood, pine 2x4 (1.5 X 3.5) and tar shingles shouldn't be expected to last.