Safacificly we're gonna talk about real estate, precious metals cryptocurrencies stocks bonds your savings I mean we're gonna go over everything let's talk about the loosen the bags of keeping your money each of these things.
Makes you see until the end because I will be telling you specific things that I think are absolutely crucial to happen this time that is not normal to what you would think you should be doing with your money.
Welcome back I'm gonna teach you all the things that you should have learned in school about money but for whatever reason, they forgot to mention it. Please be sure to subscribe because we talk about everything from personal finance to investing in the economy let's get into it now.
I want to say this is not investment advice. This is what I've researched what I came up with and I'll tell you what I think makes the most sense for me in my situation but you gotta evaluate you gotta do your own research I have to say this I don't want anybody just blindly believing this I always tell you guys to do your own research don't ever just trust one source go look for yourself.
Stocks
I want to talk about stocks first because it's very important and normally I'm saving the important things last but I do want people to absolutely read this part. I have reason to believe that the stock market will shoot up.
I still don't want to put my money in there and I'm gonna tell you what this is clearly a situation of market manipulation in my opinion not even in a pain.
I mean you literally have the Federal Reserve telling you they're buying ETFs, they're building out corporations, they are building out entire industries when you have so much money being flooded into the system it will prop up stocks.
There was a time before where the stock market actually did reflect what's going on in mainstream Main Street is you and I just on every day working that's Main Street. Wall Street the financial part of the world you know your stocks or whatever that performance goes.
There was a time where you know they moved in lockstep but now you can have things like people literally cannot even leave their homes people are dying people are losing their jobs and the stock market has its best week since 1938.
I don't know why people cannot make the connection that something is wrong here it makes no sense that stocks are going up considering everything that's going on in the world right now.
If you are somebody who is a risk-taker you could potentially see some gains I don't know in what industries. I don't really know where how I just have a feeling that we will see things continue to shoot up but when it comes down it's going to come down rural and that same 37% that we lost in the stock market within a month that can happen again.
Don't put anything past this market. I think so many things have happened that it's kind of hard for even people who are seasoned economists the kind of project to predict what's happening.
Is their upside potential?
Yes, but there is so much risk also because you don't know when they will pull that carpet up from the stock market and just let things run their course. I personally do not want to end up being on that roller coaster before it drops down without any notice.
Gold and Silver
When you hear about gold and silver also and I think not enough people talk about it. I have articles on my website about gold and silver. I will plug one here but basically, this has stood the test of time I personally believe in precious metals.
I think it's good to have something physical and people like precious metals because there is always labor involved in getting precious metals. There should always be value dollars where you just print into oblivion that has no value it takes no effort. I mean all you have to do is have a finger.
This is obviously a situation that I wouldn't want us to reach but if we did reach a situation where the US dollar had no value they printed so much of it it's become absolutely worthless and none of the countries wanted it.
They started pouring it back into America no one would use the dollar anymore and while we're in between systems because the US all that has become trash and they have to come up with some sort of new system.
You actually have something you can barter with you actually have something that is physical that is used across a lot of different industries in technology dentistry industrial work. There is used beyond just having faith in it were as a dollar.
Once you lose faith there's not really much you can do with the actual dollar itself but with gold, you can actually use it to create things with silver you can use it to build things. If you brought gold just five years ago you would have been seeing a 5% return every single year.
Even after factoring that 28% tax that we receive once you sell gold any gains lake has to be taxed at 28% even after that that still ends up being 5% a year for the past five years. Compared to Yemen is sitting in Chase which has earned points zero one percent a year. You're literally earning five hundred times more by keeping your money in gold.
Real estate
Another thing that is super important if you own a home you are considering buying a home keep on watching should you buy a home right now. There are a lot of different factors I can pull in either way because like I said before they are pumping money into these markets.
The Federal Reserve is buying up mortgage-backed securities as I have talked about in my previous articles. A mortgage-backed security is what it sounds like it's backed by a whole bunch of mortgages there buying that up so with these low-interest rates and basically guarantee that they will take these loans off of their books.
The banks can definitely keep on lending money out lower the interest rates low low low low keep passing these houses out like candy and later you have a false sense of extra demand and I could drive the price up converse with the government saying.
Okay, you don't pay your rent for maybe 90 days or even in some cases going as much as a year. You don't have to worry about that mortgage you know and so after this pandemic is potentially over okay that's nice you don't make the payment but what is gonna happen is that all that lien is going to actually be due once that period is over.
Now if you didn't have the money to pay month-by-month I definitely don't think you're gonna have the money in a lump sum. So what they're doing is saying okay well we're gonna go ahead and just rewrite you a new mortgage okay. Some people will be okay with that some won't and they will end up getting foreclosed on because they can't afford it.
They don't want a new mortgage because that payments gonna be too higher or whatever the situation maybe because I don't obviously at this point know the details and the ins outs of what these concepts would be looking like. That coupled with people who might just not have a job. Not all jobs will come back.
Am I gonna get home?
No, I live it was considered a typical market so on the coast if you're new right California Miami those areas are super sensitive to economic downturns. They see the worst effects of any recession. So in my area where I think that prices can absolutely go through the floor no.
If you're in what they consider to be a linear market or you can look this up. Then you're not super impacted by these things that are going on in the world. So it might make sense you have to kind of identity what market you're in.
If you already have a house and again this is not financial advice but this is such good information that I just want you to watch it. If you're in a house and you have equity in that house you should consider pulling the equity out. That sounds extremely counterintuitive because we are entering into rough times when people may lose their jobs but read me out.
When it's time to start foreclosing on people banks are much more likely to be aggressive with those that actually have equity in their homes versus those who have absolutely no skin in the game. You will be a target if you have some of that juicy equity.
Let's say your loan was for 500,000 but you've paid it down to 300,000 your house is now worth 400,000. As it stands right now they can actually potentially make a gain from you because you've paid your mortgage down to 300,000 so you need to owe them 300,000 but your house is worth 400,000.
So they're gonna go after you because they need to make as many gains as they can and they will attack those that they can actually make a profit out of so if you have equity in your home it can get snatched up real quick okay.
Those who are those who would actually cost them a lot more money because your house is much lower than the actual value of the house they're more likely to kind of work with you to rewrite you another more you try to keep you in there because they just want money they're trying to maximize their return to some business but if you pull out that equity.
I'm not saying to go buy a car, go buy whatever you need but you could probably pay down your debt and keep that money there on the side because if things do happen at least you can still handle your papers you'll still be able to eat.
You'll still have something to work with and you'll get the temperature equity as opposed to them just snatching it from you you still have time to do that while the market is still kind of teeter-tottering.
Real estate prices have not crashed yet so the equity you can kind of pull that out now in the past. I probably suggest do it on a home equity line of credit but if your house were to go down in value whatever you have in use over that equity line of credit they can snatch up.
Cryptocurrencies
I personally don't have any money in cryptocurrencies I don't know that I will put money in cryptocurrencies at this stage we are in but it is a good option because some people don't believe in having money in cash.
So if you don't learn too much about other currencies just check this article. Well, it's really where we're at with cash because I do believe that all the money that they are printing is going to eventually cause hyperinflation.
I don't know when but it's just a matter of time because you're having all this money created it has to go somewhere that I've said this so many times on this website but it's true. you are punished by saving your cash. You are offered laughable interest rates they take that money and they flip it on you. then they get bailed out and guess whose money bails them out oh no other than us.
I do think that you have to have cash and do play the game while the games being played so personally, I have cash in the bank and I have cash on me never really know what's gonna happen. You don't want to be in a situation where.
I don't know maybe the banks closed you can't access your money and you still need to eat but then conversely they can say you know what we're not going to use bring all your cash in and now we're gonna have virtual money you just literally don't know.
So would I say have cash in hand?
Yeah sure but I do think that in the long run, the dollar can definitely see its days. I am NOT a lawyer I almost don't want to give this tip but from what I've seen not saying anybody should do this. I don't know I'm not here to argue if it's ramen rates but a tip that I've heard is do not think where you borrow.
If you have a car loan for example or your mortgage with Chase. Don't get your paycheck directly deposited into Chase or don't put all your cash into Chase because if you come up to problems where you're like okay I had this car loan but to me eating is more important so I'm about to go get me some food and I'm not gonna make this car payment.
Well, they are illegally it would have just kind of swiped that money straight out of that banking system and they'll collect their payment. Whether you want to or not so that has happened actually so we're gonna fail Union and that happened before.
I know this actually can happen to you so if you do see yourself you know getting into the territory where you're not making payments for months just to know that you are more likely to be compromised.
If you have all your money in that same institution where you have this loan act so should you move the money oh and it's important to note that it can do that regardless but it's a much longer process to do it if you're not one of their customers keeping your money in there? They'd have to actually sue you and considering that nobody can even really leave their house right now you know it might take a little bit longer to do that.
Bonds
Bonds I know a lot of times we hear the intangible world there are stocks and there are bonds. A lot of people like US Treasury bonds because they have never defaulted. We have never defaulted on any bonds that we've ever issued as a government US government issues these bonds are basically loaning money to the government.
So because we've never defaulted they consider that risk-free but honestly in this economy in this situation I think anything has the potential to be risky and bonds are no different. They say it never failed and you know what maybe they're right maybe it never will fail but to me.
They are two different forms of failure.
1. There can be a default which is straight-up we ain't neither bruh.
2. There can be we paid you back when it's with inflated dollars so it basically has no value.
If they keep on printing all this money and again I say printing but it's really not printing. It's mostly digital but they keep injecting all this money into the economy.
Eventually, that will create massive inflation and now we have all these always at me having to pay you back your hunt year $1000. I paid it back but now all you can buy with a thousand dollars is an apple and that's what really happened.
It's not I'm not making these things up whoo that was a mouthful okay so what do I think what I think might not make you the most money but it gives me the warmth and fuzzies makes me sleep at night because I know I'm not risking my life earnings you know my kids' money like I'm not risking my livelihood to make an extra dollar.
So for me stocks right now even though I said I do see the potential for it to go up if you're not somebody who the trader who's kind of like really actively watching us and looking at the market. I don't know that I would suggest getting into stocks just because it might go up for a little bit but that it might just drop at the drop of a diamond.
You don't want to be that person card on the way down and I share the same feelings about bonds they've never defaulted sort of chance of defaulting now is slim to none. The Federal Reserve is literally buying it up so you can if you want to get out there is an exit strategy. I just don't know whatever price.
I would be at real-estate seems like a good move to me if you are in a linear market I am holding off because I just I'm not entirely sure where we're gonna be at but if I was like I don't know like in it and that land so or a certain I mean I don't even want to give out specific cities but if I was in certain cities it would probably make more sense to me.
Alright well, that's the best things that I think you should invest in right now that are non-traditional I think it's so important to invest in getting food I don't want you to be a hoarder of course but I can see supply shops happening where people aren't able to get the food that they want to get or if they do get it it's going to be much more money because there are so many people rushing and trying to get the same thing.
When you have a lot of people chasing the same thing the price will go up to kind of combat some of that demand protection and whatever that means to you.
What I'm talking about is you know some defense things you don't know what's going to happen but I do see other stores in these bigger cities avoiding up their windows people are starting to get 5-finger discount happy and snatching up stuff.
So you do not want to get you to know in between any of that I would hope to not have to use anything like that but come over here. If you want some I'm gonna sound so crazy but they'll just think that I think it doesn't really hurt to have yourself a skill.
Do things that you can actually do to provide value in real life because we might reach a point where you're going to need those skills you're gonna need your food you're gonna need community so I think it's really important to have those things, not things you would think about but definitely do it.
*Please be sure to do your own due diligence before making ANY financial decisions. On my channel I share with you my research but please verify everything for yourself! I do not give investment advice, just share my thoughts and my choices!*
