22 Feb 2013
The team and I are heading back to Sacramento for the last time in this series…
This is a very exciting time and from my 40-years of investing I have learned that people must fundamentally understand how to invest in multiple markets. If you only understand one investment (bonds, equities, metals etc) some markets will make you look like a genius, while others will make you look like a…
Metals (gold, silver etc) have had an unprecedented run – it will not last forever and as soon as the Fed ends their spending spree, metals will contract sharply. Of course a possible inflation wave (see Peter Schiff) could buoy them, but metals alone are a lopsided investment.
Real estate has up years and down. You need to understand when commercial is king and when residential is the way to go. Cash flow is far and away the most important facet of any investment. Interestingly, being leveraged on real estate investments is ideal during periods of escalating inflation.
The stock market is basically on a 5-year high. I meet people in planes all the time that tell me that they are just now getting back into the market. Its crazy how people like buying when things are very expensive and want to sell when they are cheap. The first rule of investing is “buy low and sell high”.
Regardless, I am looking forward to an awesome weekend.