Self Storage- Economic Outlook- Positioning

[Henry Clark]

My personal assessment of the overall economic risks has hit a tipping point.  

Decided to sell 4 of our Self Storage locations.  They are great cashflow investments.  But my overall investment strategy and Risk/Reward needle is leaning negative for the overall economy.  Want to move to a really great Debt/Equity position.

Paying off debt goes against both REI strategy of leveraging debt and also inflation, paying off with cheaper dollars and having hard assets to ride the increase in value due to inflation.

Our strategy. 

a.  We are retired so no concern on the W-2 side.  

b. We were already in a great Debt/Equity position but will solidify further by selling the 4 locations. 

c.  Stocks, moving out of any overseas investments.  

d. Control more cash in MM or CD's so we don't take the full inflation bite, holding cash.  But liquid to ride any waves or take advantage of any buying or development opportunities.

e. Gold??  Have to research further.

f.  If Farm ground comes up near us that also has development potential will take a look at that.

g.  Teak farms- this already fits our risk strategy since this is a 10-to-25-year play.

h.  Pulling out of building additional buildings we had planned.

i.  Inflation- still have plenty of hard assets and development land sites, to ride any high inflation moves.

Let me know if you recommend any changes/adds to the above action items.  Thanks.

Start small and Make Your Big Mistakes Early.

The above sale move could be a mistake and it will be another lesson I learn.  But my risk/reward needle for me personally is in the red for the overall economy for the next several years.  Either way, we still are in a great position.