mispoken

Poor timing.

ProShares is launching a short bitcoin ETF this week
https://www.cnbc.com/2022/06/20/pros...pyToPasteboard

Gunfighter

OK. Here we are in Market Outlook

Nostradamus? Predicting inflation is like predicting whether or not the sun will rise tomorrow. If it does, good. If it doesn't, it didn't matter anyway. Inflation may only be 1% or it may spike, but it will be there.
Trip is being far too gracious by setting a stake in the ground for today. For the "average pilot" the time to prepare for inflation was yesterday.

OOfff

Preparing for 1% inflation and preparing for 9% inflation are very different, and trip’s plan is to offset the acute inflation we are experiencing today.

OOfff

only a month late

Trip7

It's just one day's performance so most of this is in jest, but BTU and EGY's performance today alone beats inflation

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OOfff

and BTU’s performance last week reverses it. Glad you’re able to time the market so narrowly, though.

iahflyr

Or right on time for those of us who think Bitcoin will keep going down…

Gunfighter

Building a basket of cash flowing assets that responds to inflation prepares you for 1% just like it does 9%. In times of high inflation, the response is more pronounced and in times of low inflation there is less response. A leveraged asset basket will have an expanded response to inflation, much like a 2x, 3x index ETF responds in kind to the underlying index

Consider a package of concrete, lumber, copper, steel, rock and glass, store the bundle in a safe location and have it guarded for safekeeping. I call that bundle a rental house in a good neighborhood with a properly screened tenant. If you have a larger sum to dedicate or prefer pooling assets, consider an apartment vs a house. Rather than pay for storage and security of physical commodities, collect cash flow via lease income. This particular commodity basket lags inflation by up to 1 year as taxes, insurance and rent are typically 12 month agreements. Other packaged commodities with short leases like self storage have a quicker response time on income with the same 12 month lag on expenses. A NNN lease well have a longer lag for income response, but the tenant is on the hook for expenses.

Residential rent growth has an amazing correlation to inflation. Shelter makes up 1/3 of the CPI. It has a bigger impact on inflation than Apple, Microsoft, Google, Amazon, Meta, Tesla, Exxon, Nvidia, JP Morgan and Home Depot do on the S&P 500. Once the NOI from your packaged commodities exceeds your personal expenses, inflation begins working in your favor.

Preparing for 1% is the same as preparing for 9%. Safely leveraging the portfolio, then running into 9% inflation will water your eyes. It's the difference between a Model S Plaid and a MX-5 at the racetrack.

Trip gets the concept, he's just taking on a much more challenging approach by building the life raft while the boat is sinking.

Gunfighter

Trip7

STANDING OVATION

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