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Updated over 4 years ago on . Most recent reply

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34
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Gordon Forbes
  • Investor
  • Roseburg, OR
48
Votes |
34
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What do you invest in when everything is over valued?

Gordon Forbes
  • Investor
  • Roseburg, OR
Posted

What do you invest in when all the cyclical investments seem to peak at once?

In my humble opinion:

Real estate is due for a correction.

The stock market is due for a big correction. 

Every currency is on shaky ground.

Precious metals no longer seem to be the contrarian investment.

Crypotocurrencies are just too new to know which ones will have a future.

Inflation or hyperinflation is a real possibility so sitting in cash is suicide.

If everything goes really really bad then the only universal form of "monetary" exchange will be canned food and shotgun shells. I'm not enough of a doomsday prepper to go that far.

So what does that leave?

Does one diversify so that when 9 out 10 investments tank one has enough left over to buy Scotch and wallow in drunken misery? (Ok, perhaps that's a little too pessimistic).

It's just when I look at my portfolio I think "man, I should sell that (real estate, stocks, forex, metals) before it drops like a rock" and then do what with the money?

Most Popular Reply

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1,160
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2,121
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Michael Swan
  • Rental Property Investor
  • San Diego, CA
2,121
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1,160
Posts
Michael Swan
  • Rental Property Investor
  • San Diego, CA
Replied

For every overpriced highly speculative Phase 2 selling stage area in America, there are areas of America that are moving from stage 1 to Stage 2 buying phase.  This is the phase where you can make great cash flow and Appreciation is just starting to take off.  I invest in Euclid Ohio and Lake County Ohio presently and property values have risen  about 40-50% since 2014 in those areas.  

I sold and 1031 exchanged all my pricey San Diego Rental properties that are clearly In the middle of a Phase 2 selling stage.  In a few years the party will be over in San Diego.  The party is just starting where I am investing now.  

I went from 10 San Diego rental properties purchased in a clearly stage 1 Buying phase in 2011 and 2012.  I was cash flowing $50,000 a year.  Then, in late 2015-2016 all of those San Diego rental properties doubled in value.  So, I 1031 exchanged them all and now am a principal in 8 apartment complexes in NE Ohio that have 122 front doors and they cash flow at $160,000 a year and rising at a rapid rate.

You gotta know when to hold em, know when to fold em, know when to walk away and no when to run!!  

If I can do this on $80,000 family W2 earned income living in pricey San Diego, anyone can.

Go for it!!!!

Swanny

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