Jan 1, 2018
#110: Happy New Years! We're kicking off this year on a bright and cheerful note -- with a conversation about the impending recession! Yay!
The U.S. stock market is at a peak, continuing its 9-year bull run. The markets have been rising since March 2009 without any major corrections or pullbacks.
We are living in one of the longest periods of economic expansion in our nation's market history.
Speculators with short memories are popping champagne corks thinking the good times will last forever, while those of us who are students of history know that what goes up must come down.
Trying to guess WHEN the next recession will happen is a waste of time. A more efficient use of time is to prepare ourselves such that when it does happen -- whenever that may be -- we are ready.
How can we prepare for a recession? That's one of the four topics I cover in today's episode.
Specifically, here's what we chat about in this first episode of 2018:
1) Broadly -- What are the best investments overall if you're
going into a recession?
2) Specifically -- What's the most recession-proof type of real estate investment?
Aaron from Portland, Oregon asks:
In Episode 96, you discussed the benefits of real estate investing -- but you didn't mention the use of leverage, nor did you mention that real estate is an inefficient market. Why not?
Anna from the San Francisco Bay Area asks:
I've moved out of my condo, which I'm renting out. But the rent only covers the mortgage (PITI) and HOA. Should I sell the condo? If so, I could use $250,000 in equity for an alternate investment, such as buying rental properties out-of-state.
How to Calculate Cap Rate and Cash-on-Cash Return --