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Point me to these assets that are guaranteed to go up. I’ll force my kids to get loans and I’ll invest in these instead.
by smudgymcscmudge 7y ago
Point me to these assets that are guaranteed to go up. I’ll force my kids to get loans and I’ll invest in these instead.
- gridlockd 7y agoI suppose the tongue-in-cheek was lost on a lot of people here, this is not financial advice, especially not for the average Joe. Having said that, this is what companies (and certain wealthy individuals) have been doing for a while now: Get cheap loans, buy back your own stock, buy more real estate, drive up the value, get more loans based on those inflated valuations. You may be able to do this as an average individual, that's what happened in 2008 when every schmuck would get a mortgage based on another already mortgaged house. The difference is, when you're an individual the government is not going to bail you out personally (unless maybe Liz Warren or Bernie Sanders are in power). You can at least declare personal bankruptcy if you didn't incorporate. Now the reason why this is a fairly safe bet today is that the governments of the world absolutely don't want to repeat 2008. They will create any amount of money necessary to keep the party going. This means asset prices will rise due to pure inflation. Anyone with cash or long-term bonds will be left holding the bag, which also coincides with the interest of the heavily indebted governments.