Strategies for US inflation

[Ries]

again, aside from long term real estate, I cant think of any. Particularly when the exchange rate variation, and devaluation of the peso, is taken into account.
My apartment is certainly worth more than I paid in 2007.
But even then- if you look at how much appreciation you would have made on a similarly priced good deal somewhere in the USA- the US probalby still would have been a better investment.
I always tell people they should invest in Argentina, in terms of buying a home or starting a business, because you love argentina, not to make money. And I do know expats who have done well, even with ups and downs, if they started businesses they loved and really cared about. But certainly not every business, or every person.

 

[on the brink]

real estate doubled in 10 years if in the right area

The problem is identifying the "right" areas.

 

[cuando_volverá]

wanna buy a 10 acre ranch?

Where? Though I'm not sure I would consider 10 acres a ranch. Definitely a nice plot for growing vegetables and a few animals.

 

[QuilmesSlo]

Who knows, but you generally would not be buying the dip at this stage:

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Well, the premise was fear of inflation, not optimal trading strategy.

 

[Cordoba]

Rural land that isn't suitable for mass agriculture seems like the best value. I've saw 1000+ HA plots for sale less than a lot in a private developement.

But seems like the most illiquid thing possible. And it is all a long roadtrip from BA.

 

[jbeas176]

while not smart enough to buy individual stocks with good dividends, i recently put money in a schwab intelligent porfolio, dialed the risk meter to 45%. track record shows between 6 to 8%. on the recent correction it did what it was supposed to do. sold a schwab emerging market etf and a vanguard mid cap fund. added to the portfolio on the way up. was down now up on original amount. ive read the real inflation id 14%. that should cut it in half.

 

[lost]

Stock, bonds, crypto. But outside Arg.

 

[jeff1234]

The US has been the best and safest place to invest. But not every moment has been equally good for owning US property or stocks. In 2006, I was living in Florida, the average home price in Miami was $340K, and by 2011, it had dropped to $170K. Prices eventually recovered but owners had to support their property (taxes, fees, maintenance) for many years.

America is currently in a worse bubble than 2007 because buyers are panicked that reckless government spending and borrowing will bring on servere inflation and destroy the value of any money that they havent invested. Sounds more like Argentina.

I just sold my last parcel of land in the Hamptons. I got double of the price that I got for an indentical parcel 2 1/2 years ago. That kind of price inflation puts us in 'bubble' territory. Same for my stocks. Since I like to buy low and sell high that's what I'm doing.

I don't think there's any way for me to invest in Argentina. I don't trust the government or the courts.

 

[QuilmesSlo]

The US has been the best and safest place to invest. But not every moment has been equally good for owning US property or stocks. In 2006, I was living in Florida, the average home price in Miami was $340K, and by 2011, it had dropped to $170K. Prices eventually recovered but owners had to support their property (taxes, fees, maintenance) for many years.

America is currently in a worse bubble than 2007 because buyers are panicked that reckless government spending and borrowing will bring on servere inflation and destroy the value of any money that they havent invested. Sounds more like Argentina.

I just sold my last parcel of land in the Hamptons. I got double of the price that I got for an indentical parcel 2 1/2 years ago. That kind of price inflation puts us in 'bubble' territory. Same for my stocks. Since I like to buy low and sell high that's what I'm doing.

I don't think there's any way for me to invest in Argentina. I don't trust the government or the courts.

I don't know -- if US interest rates remain so low nominally (and well in negative terms in real terms) -- and they have to remain there for the US to service its debt -- I am not so sure that real estate is overpriced.

Note that rentals have also spiked.

 

[Sequoia1321]

The US has been the best and safest place to invest. But not every moment has been equally good for owning US property or stocks. In 2006, I was living in Florida, the average home price in Miami was $340K, and by 2011, it had dropped to $170K. Prices eventually recovered but owners had to support their property (taxes, fees, maintenance) for many years.

America is currently in a worse bubble than 2007 because buyers are panicked that reckless government spending and borrowing will bring on servere inflation and destroy the value of any money that they havent invested. Sounds more like Argentina.

I just sold my last parcel of land in the Hamptons. I got double of the price that I got for an indentical parcel 2 1/2 years ago. That kind of price inflation puts us in 'bubble' territory. Same for my stocks. Since I like to buy low and sell high that's what I'm doing.

I don't think there's any way for me to invest in Argentina. I don't trust the government or the courts.

I also sold my home recently, but it was because I want to move somewhere else, perhaps to Argentina. Why do you think real estate is in bubble territory? Wasn’t the housing market crash due to a real estate issue, loan defaults due to bad lending practices or something of that sort? What might cause the home prices to crash now? Or are you talking about a correction? But I do agree there are major price increases. The rising home prices has been all over the news. Here is a chart of US home prices since the 1950’s, both regular (blue line) and inflation adjusted (yellow): https://dqydj.com/historical-home-prices/. You can see it has been pretty much an up trend on the regular dollar price (blue line) except for the famous housing crash.

On another topic, gold and silver are acting interesting in that they haven’t been performing well. I wonder why that is happening in an inflationary environment, shouldn’t they also be shooting up?





One of my wishes is to have a sack of gold and/or silver coins, preferrably in very small coin sizes so if I ever have to spend them it’ll be more practical. Also, this might be silly but I would like to have it maybe in an old school sack, like something that looks like it’s from ancient times. One of those fabric sacks, not sure what they’re called, the kind where they put the coffee beans in, looks like hemp or something.

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EDIT: Interestingly, on the real estate price chart: https://dqydj.com/historical-home-prices/, the inflation adjusted price (yellow line) is not much different now than in was around 2005.