How To Profit From MASSIVE Inflation

[Hydrogen]

How To Profit From MASSIVE Inflation
This video will explore 3 ways to invest if you want to profit from the inflation we've been seeing over the past year.
https://www.youtube.com/watch?v=MPQ0pttjinI


Recommendations on real estate and commodities as good business models to pursue in eras of high inflation.

He contends real estate will appreciate in value at a pace rivaling inflation, allowing for profits over both short and long term.

Commodities is his other recommendation.

Interesting whiteboard analysis and good breakdown.

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[jackg]

I think these are assets that are likely to underperform too when the inflation starts to drop and might be rising more due to people being desperate to find something. It's possible to find strategies that hedge against crashes anyway (eg investing in firms for their value - especially large ones).

[Poker Player]

I watched the video and while it's generally good advice, I'm surprised that he only mentions Bitcoin in passing at the end, as it has been the best inflation hedge since its inception. Plus it's much easier and more convenient to buy and trade than RE, and you don't depend on a bank approving a mortgage.

I liked the Rolex example at the end. I just thought it was a gimmick, but the point of view that it is a hedge against inflation and you can take it anywhere in the world (as it doesn't count against the cash limits you can take with you when traveling) is interesting.

[odolvlobo]

Here is what I think:

I think the only way to profit from inflation is to borrow money to buy income-generating assets whose income and value keep up with inflation.

You don't profit from inflation by simply buying assets like gold or Bitcoin because their value simply keeps up with inflation and does not necessarily increase in real terms.

In order to profit from inflation, you must borrow money. The profit comes from repaying the loan with inflated money. The purpose of buying an asset is to get rid of the money before it is inflated and replace it with an asset whose value does not drop. The purpose of buying an income-generating asset is to ensure that you can repay the loan with inflated money. It also helps avoid the trap on being taxed on the nominal gains due to inflation.

[Gozie51]

You don't profit from inflation by simply buying assets like gold or Bitcoin because their value simply keeps up with inflation and does not necessarily increase in real terms.

I also don't believe that merging your money or buying bitcoin or gold is a way to run of inflation because in conversion it still having effected by inflation but my view on that apart from value is that in the angle of diversification. If it is for investment purposes then that serves as diversification of investment that is what gain we could have from inflation. Therefore, multiple stream of income is part of the means to massively profit from inflation.

[Leviathan.007]

The whole point about the topic and what everyone forgot is your goal to earn profit even during massive inflation which means you will need more than earning normal profits because even if you invest in something and earn profits from it, just because of the inflation rate you will still have the worth of money because the value of the money decreased and your money amount increased so you will need more earn more profits than this, investing on real estate is the first case where you are growing which the inflation rate but you are not actually earning profits, here you will need a better investment to even earn profits using the inflation, bitcoin can be an option however you will need to take more risk.

[Dunamisx]

Recommendations on real estate and commodities as good business models to pursue in eras of high inflation.

Aside real estate and commodity stocks, one can also invest on gold, leverage on loans as mortgage, companies share and bond  and landed properties. In a nutshell anything that can not depreciate in value in due time worth investing and can be a means to massively make profit during inflation.

[kryptqnick]

In the first strategy he's talking about a fixed-rate mortgage which requires being in the US and having a mortgage there, so not exactly helpful to anyone else. The second strategy relies on the same fixed-rate mortgage thing, which is not the case in most countries, just as he mentioned at the beginning of the video. IMO, the best investment right now, which also happens to be accessible all over the world and doesn't necessarily require having dozens of thousands of dollars, is high-cap high-reputation cryptocurrencies which are significantly down.

[Rruchi man]

Recommendations on real estate and commodities as good business models to pursue in eras of high inflation.

He contends real estate will appreciate in value at a pace rivaling inflation, allowing for profits over both short and long term.

Commodities is his other recommendation.

Real Estate is one asset that is a sure insulation against inflation. It's supply is dwindling and it's value increasing by the day. Because it will always be in demand, and the supply will never be able to equal its demand, hence realtors will always be in profit regardless of inflation.
As for commodities, they will forever be in demand like real estate, and to save yourself from inflation, it is better to be a supplier where you can still make changes to your price maintaining profit than just a consumer with no choice.

[bittraffic]

Real estate is really one of the best either just land or an apartment/house that you can rent out to be able to support yourself. I'm more of a Long Term (LT) as what the video guy is saying named Marko. I've not come across his channel before.

Some suggestions I've read were the trustee i-bonds issued by the US government although I have not tried this one myself, some may be interested to learn what it is. And then of course gold and of course BTC.

[ChrisPop]

1) We've got to take into account that central banks are already starting to raise interest rates. This measure cuts down on the amount of credit existent in the economy >> as most house purchases are made using mortgages and they now become more expensive I think we can assume that there will be smaller demand for houses as the debt service burden would be too high for many persons. Sellers won't find buyers so they will have to lower their ask prices >> lower value. However, if the inflation continues at this pace the replacement value (land, materials and work) will raise as well.

2) IMO commodities are a decent be during times of inlation as they are necessary for the economy to thrive. Although raised interest rates will also affect the demand for them, the impact will be smaller as they are necessary for the economy to function properly.

[el kaka22]

I love these types who keep saying "well if you buy a house and create debt, your debt will be very tiny in 30 years whereas your income will be huge due to inflation!", dude do I look like I can buy a house? Like what is wrong with these people?

Housing prices could be fine in the USA and you may get one, but here it costs somewhere between 50k to 350k to buy a house and the minimum wage is like 300 dollars, yes I make more than minimum wage but not like I make 10k per month, I do not make that at all, I barely make twice as much as minimum wage, and that is good but nowhere NEAR enough to buy a house. That is why I am in crypto and it has been helping me slowly grow my capital.

[ChrisPop]

I love these types who keep saying "well if you buy a house and create debt, your debt will be very tiny in 30 years whereas your income will be huge due to inflation!", dude do I look like I can buy a house? Like what is wrong with these people?

Housing prices could be fine in the USA and you may get one, but here it costs somewhere between 50k to 350k to buy a house and the minimum wage is like 300 dollars, yes I make more than minimum wage but not like I make 10k per month, I do not make that at all, I barely make twice as much as minimum wage, and that is good but nowhere NEAR enough to buy a house. That is why I am in crypto and it has been helping me slowly grow my capital.

I hear you, man. I would also not be that sure that the debt will be very tiny in 30 years. Once you take out a mortgage (indebt yourself) for 30 years you will have a big debt service burden on yourself. You also expose yourself to the risk of increasing interest rates which will inherently raise the costs of your financing.   So yeah, buying houses on credit and managing them is a game for the wealthy.

I agree that crypto is a good instrument to grow your wealth, but you should also have a more conservative part in your portfolio.

[Z-tight]

Making profit from massive inflation is hard, for people who are poor and suffering to cope with the increase in cost of living and reduction in value of money i think buying any asset, commodity or house is out of the question. Whichever asset or plan is great for profits when there is massive inflation is suitable for the rich, or people who have enough money to invest and still have some left to eat and for miscellaneous things. Massive inflation should be avoided at all cost by officials in power, because only a few can make profits and live fine amidst it.

[South Park]

I watched the video and while it's generally good advice, I'm surprised that he only mentions Bitcoin in passing at the end, as it has been the best inflation hedge since its inception. Plus it's much easier and more convenient to buy and trade than RE, and you don't depend on a bank approving a mortgage.

I liked the Rolex example at the end. I just thought it was a gimmick, but the point of view that it is a hedge against inflation and you can take it anywhere in the world (as it doesn't count against the cash limits you can take with you when traveling) is interesting.

Jewelry has been used like that for a long time, while jewelry is more expensive than the material it is made of, due to the amount of work it went into create it, at the same time it is a known way to move value over country borders without raising suspicions, so someone that has already a significant amount of money can afford to move wealth in that way without arising suspicions over himself, and could still sell his jewelry for a good price on his destination, still nothing can beat bitcoin when you can literally move it with you by just remembering your seeds words while there is nothing that indicates that you have it.

[adaseb]

Yes real estate is a great investment however investing now seems very risky. Real estates in some parts are crazy. And it’s getting to the point where all the young professionals are just packing up and moving to a different city to be able to finally afford a house.

Look at what happened with San Francisco, it had one of the most expensive real estate prices. And it became too expensive to live so people either went homeless or moved elsewhere. Now the city is full of crime that the police don’t prosecute certain crimes such as shop lifting. Now as a result many large retailers are closing shop in the area and moving out.

So it’s not always a risk free investment.

[Obito]

In my opinion, it's difficult for an average person to make this happen because making money out of inflation requires a lot of money so I am pretty sure that people like me won't be able to do it but it's a good idea and some might be able to use this ideas so they can profit out of inflation. Only one that I know when it comes to this is how to hedge yourself or how to protect yourself from inflation and that's about it.

[Reid]

I strongly agree with real estate investing but it requires a lot of money. "If I could, I would." But it doesn't mean there is no risk into it. It will not spoil, that's a fact but it might also take long for ROI and profit. During an inflation all prices will rise at a rate that cannot be controlled. One more trick is while waiting for the ROI and profit, try to make it a business and put it for lease. That way, money will keep on coming rather than just waiting for the inflation to slow down and a buyer to come in.

[pinggoki]

I strongly agree with real estate investing but it requires a lot of money. "If I could, I would." But it doesn't mean there is no risk into it. It will not spoil, that's a fact but it might also take long for ROI and profit. During an inflation all prices will rise at a rate that cannot be controlled. One more trick is while waiting for the ROI and profit, try to make it a business and put it for lease. That way, money will keep on coming rather than just waiting for the inflation to slow down and a buyer to come in.

Especially at the present, real estate is expensive as someone's soul so it's really difficult to get in unless you can immigrate in other countries that hasn't realized their real estate potential yet like small countries that can be a potential tourist destination. I have learned a lot about using real estate as a means to make money. I don't know much about leasing but wouldn't evicting someone out of it is difficult?

[ethereumhunter]

A big NO if to have real estate is from debt. How does a small worker pay that debt for 30 years while he has many things needed for his life and family? Sometimes those people can easily suggest unrealistic things for people. Ok, well, maybe that works for them but that can not work for others. But I like what he said at the end of the videos.

But there are a million ways you can if you can find your niche.

That is something that we need to search to help us to stop the hamster wheel and make a profit.

He shows that it is easy to profit from inflation and one of that many ways will be real estate. If they have much money, they can use real estate to follow the way. But if it is not, they should find other things. Luckily, we have cryptocurrency that can help us get out from the inflations but we need to learn more.