Investing for income?

[fwafwow]

This thread for some reason reminds me of a commercial from about thirty years ago..... "I'm not a real doctor but I play one on television."

Or the more recent ones where someone says "but I did stay at a Holiday Inn Express last night"

 

[Craig Van Arsdale]

The rationale of measuring a small bucket of things that are inflating the greatest doesn't make sense in terms of estimating actual inflation. That is equally as misleading as using CPI which largely excludes those items. The practical implication is that an increase in the cost of things people do not buy does not reduce their capacity to purchase other good/services. I guess the best way to determine "real" inflation is to weight it against the things that people actually spend money on, and that can be highly variable from person to person.

Maybe we can agree then that Inflation itself is misleading Americans? The dollar is designed to be inflated and through inflation the govt gets to spend $$ on seemingly whatever they please through this loophole as opposed to passing it through Fiscal policy which we all know would never fly! We can agree to disagree on how inflation is measured but In the end does it matter how we see it if the assets are rising? I just don't see how it doesn't affect every American as we all want to buy homes, work hard and hopefully retire early with a stable nest egg into our elder years. Typically the closer you get towards retirement the more of your portfolio goes into fixed income investments. There is literally no yield out there in this environment and money supply is not stable, what are people to do to preserve their wealth?

I guess the way I look at it is Inflation is theft of human capital and everyone should be looking at how that is being perceived in markets and regardless of how its measured. I want to preserve my purchasing power as it relates to these items and I think most Americans do as well so my investment strategy has changed so I can realize gains that outpace this measurement of inflation. If an investor is only concerned about the items in the CPI basket then by all means shoot for a 7-9% return and forget about it.

 

[Beendare]

There is literally no yield out there in this environment and money supply is not stable, what are people to do to preserve their wealth?

^^Yes sir......and unfortunately it is creating an environment where folks that shouldn't be taking on more risk absolutely have to

I guess the way I look at it is Inflation is theft of human capital

Exactly^...so the key is to own assets that grow along with inflation; Ranches, Farms, Apartment buildings, rental homes, etc. almost all of these keep pace with inflation.... at least the ones in good areas.

_____

 

[Mighty Mouse]

Maybe we can agree then that Inflation itself is misleading Americans? The dollar is designed to be inflated and through inflation the govt gets to spend $$ on seemingly whatever they please through this loophole as opposed to passing it through Fiscal policy which we all know would never fly! We can agree to disagree on how inflation is measured but In the end does it matter how we see it if the assets are rising? I just don't see how it doesn't affect every American as we all want to buy homes, work hard and hopefully retire early with a stable nest egg into our elder years. Typically the closer you get towards retirement the more of your portfolio goes into fixed income investments. There is literally no yield out there in this environment and money supply is not stable, what are people to do to preserve their wealth?

I guess the way I look at it is Inflation is theft of human capital and everyone should be looking at how that is being perceived in markets and regardless of how its measured. I want to preserve my purchasing power as it relates to these items and I think most Americans do as well so my investment strategy has changed so I can realize gains that outpace this measurement of inflation. If an investor is only concerned about the items in the CPI basket then by all means shoot for a 7-9% return and forget about it.

The only objectively quantifiable definition of inflation is an increase in the money supply. CPI, PCE, etc. are imperfect measures of general price increases which are a direct, but not readily quantifiable, effect of monetary inflation. Those measures can easily be manipulated to suit the ends of the money printers. The distinction between monetary inflation and price inflation was once commonly understood but has been purposefully obscured by those who benefit from monetary inflation (namely, the federal government and their favored banks/companies/institutions in the private sector). To quote Henry Ford: "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."

 

[Craig Van Arsdale]

^^Yes sir......and unfortunately it is creating an environment where folks that shouldn't be taking on more risk absolutely have to


Exactly^...so the key is to own assets that grow along with inflation; Ranches, Farms, Apartment buildings, rental homes, etc. almost all of these keep pace with inflation.... at least the ones in good areas.

_____

Agreed but you missed one, Bitcoin

 

[JRMiller]

My best advice:
1) Do NOT hold on to cash/dollars. Inflation will be our worst enemy in the years to come. When you hold onto cash its just losing value quickly. Sounds like you know this one.
2) If your investment is not averaging at least %7 percents returns, your only hedging your money, not making any. Unfortunately. those avenues with numbers are becoming more risky, but you have to try.
3) Real Estate is indeed booming in areas that are having influx, find those ares to invest in. If an area has prices moving higher, but you dont see an influx, that is inflationary prices, not true value.
4) Cryptocurrencies. Trust me, i was a skeptic for many, many years as well, but with the dollar dieing, and a reset coming, our currency will migrate to something else, and the business have not finally excepted this and are moving on to crypto. MicroStrategy was a huge big one, then Elon just today. And theres others to the tune of 25 billion that are moving on it quick.
Follow crypto values the last few yeas, its eye opening.
I made $7000 last two days alone in crpyto (Bitcoin on that one, plus a little Ethereum). and thats not my day job.
And to note, the Chinesehave already circulated $130 million e-yaun in the last two weeks, they are waaaay ahead of us. Why? Because they know better than anyone else the value of the dollar is plummeting.

 

[JRMiller]

bty, on Bitcoins release it was 8 cents. Today it hit $48k and is stable at $46k-$47k

 

[rob86jeep]

bty, on Bitcoins release it was 8 cents. Today it hit $48k and is stable at $46k-$47k

How do you figure it's stable at 46-47k? Is that just because it's been at that level for the past 24 hours or is that number from another source of info?

 

[MattB]

Maybe we can agree then that Inflation itself is misleading Americans? The dollar is designed to be inflated and through inflation the govt gets to spend $$ on seemingly whatever they please through this loophole as opposed to passing it through Fiscal policy which we all know would never fly! We can agree to disagree on how inflation is measured but In the end does it matter how we see it if the assets are rising? I just don't see how it doesn't affect every American as we all want to buy homes, work hard and hopefully retire early with a stable nest egg into our elder years. Typically the closer you get towards retirement the more of your portfolio goes into fixed income investments. There is literally no yield out there in this environment and money supply is not stable, what are people to do to preserve their wealth?

I guess the way I look at it is Inflation is theft of human capital and everyone should be looking at how that is being perceived in markets and regardless of how its measured. I want to preserve my purchasing power as it relates to these items and I think most Americans do as well so my investment strategy has changed so I can realize gains that outpace this measurement of inflation. If an investor is only concerned about the items in the CPI basket then by all means shoot for a 7-9% return and forget about it.

I would agree the truth is in the middle, but don't care to conjecture where that is. But the true impact definately varies from person to person. An individual who is approaching retirement, has their kids through college, and owns their home is in a different situation than a young family that is renting/hopes to buy and has a couple of kids to put through college.

Going significantly into fixed income securities is a strategy that is somewhat outdated with some retiring sooner, most living longer, and a reduction in pensions. People need a higher return to make $x last 5-15 years longer than in the past.

 

[JRMiller]

How do you figure it's stable at 46-47k? Is that just because it's been at that level for the past 24 hours or is that number from another source of info?

Well, for one, my eyes been locked on it since Jan 1rst, and its about as stable as i have ever seen.
Look at its price index chart, its was $40k in January, it hit $48.2k yesterday, and like most peaks ,theres a pullback, which is now 46-47.
As well, its stable because with the recent large corporate investments there is zero chance these companies will just pull back the billions invested.
Tesla, 1.5 Billion.
MicroStrategy 1.125 Billion
NYDIG 25 Billion
GreyScale investmants 20 billion
and on and on

And on top of that the SEC just ruled that cryptos can be exchanged as a form of currency in US banks. South Korea just ruled the same.

Could Bitcoin pullback to perhaps 40k, sure, but is it ever going back to 30, 20, 10, or .08 cents again, never...

 

[hodgeman]

How do you figure it's stable at 46-47k? Is that just because it's been at that level for the past 24 hours or is that number from another source of info?

I wonder that myself...it's been "stable" since yesterday.

 

[Glory]

I wonder that myself...it's been "stable" since yesterday.

Stable as in “buy some so I can make money” stable.

 

[Craig Van Arsdale]

I wonder that myself...it's been "stable" since yesterday.

The question is "Is the Dollar stable?" or any worldwide fiat currency for that matter.

People often site the volatility of Bitcoin but neglect to look at the underlying fundamentals driving it from Zero value to 48K per coin over the last decade. You cannot go from an asset with zero value to THE world reserve asset without volatility on the way. When you zoom out it has an annualized 200+% gain for over a decade has zero counter party risk, no third party intermediary to censor transactions, fixed supply that is audited every 10 min by 10,000+ unique decentralized nodes around the world, Divisible up to 100,000,000 units (Sats) per BTC (enough for everybody), trades 24/7/365 around the world ie: instant liquidity 24/7, Second layer payments made on the Lightning Network are made in less than a second and essentially free, It's an escape from hyperinflation by hundreds of millions of people in third world countries and the over billion people in the world who cannot afford to be banked. I could go on an on but I kind of like the upside volatility

 

[Craig Van Arsdale]

Stable as in “buy some so I can make money” stable.

You can either buy some now at a bargain or be forced to buy it later... your choice.

Everything is getting cheaper by the day for Bitcoiners.

 

[hodgeman]

Stable as in “buy some so I can make money” stable.

It's nice to see "The Greater Fool" theory still has some adherents.

 

[JRMiller]

You can either buy some now at a bargain or be forced to buy it later... your choice.

Everything is getting cheaper by the day for Bitcoiners.

Couldnt be said any better

 

[Beendare]

A discussion on investing for income has turned into betting on bitcoin...... that alone has some scary implications


...

 

[BigBadJohn]

I am interested to hear what hard working smart people have done to generate income from lump sum investments for retirement income.

Buying notes.

 

[Wib]

It's difficult to invest in something you do not fully understand, and I don't understand any of this digital currency stuff. Also, how is getting into it now feasible for the common man at entry prices today?

 

[elkyinzer]

Bitcoin is nothing more than a highly speculative digital asset, a collectible with no more tangible value than a baseball card, that wishes to be a currency when it grows up.