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Ep. 92 INVESTOR MINDSET: Why the Pendulum of Inflation favors Investing in Real Estate

In this episode of “Kiss My Assets' ' Jamison and Heather talk about what's going on in the Financial world. They dive into the topic of inflation, explaining its impact on the economy, particularly for those at the lower end of the economic spectrum. They emphasize the importance of having money in assets rather than keeping it in cash to counter inflation's decline in value. They provide insights into the factors contributing to inflation, such as pent-up demand, supply chain disruptions, and increased costs of goods and housing rents.

The conversation shifts to the current state of inflation, with the acknowledgement that it is not a desirable situation for anyone. However, from an investor's standpoint, the rising rents and asset returns can help balance out the effects of inflation. They discuss the actions taken by the Federal Reserve to counter inflation, such as increasing borrowing costs to slow down the economy. They express optimism that inflation will peak and return to a more normal level in the coming months. Heather recalls the advice of Professor Dennis Hoffman, who reassured that inflation is cyclical and normal.

The discussion then turns to the challenge of developing an interest in investing for individuals who may find it overwhelming or uninteresting. Heather suggests starting with simple steps, like reading the financial news and familiarizing oneself with key concepts. She highlights the importance of seeking guidance from experts and financial advisors as one's savings and investments grow. Real estate investment is presented as a relatively simple and understandable option, where understanding the revenue, costs, and profits is crucial before making an investment decision. Heather encourages individuals to take their time, educate themselves, and gain confidence before investing.

Overall, the conversation emphasizes the need for understanding inflation's impact on the economy and the importance of investing in assets to counter its effects. It encourages individuals to educate themselves about financial matters and seek guidance when necessary, while also highlighting the potential benefits of investing in real estate.