Fri, 23 November 2018
Jason Hartman talks with Venture Alliance member Mike Zlotnik about cap rates in today's interest rate environment. Mike explains what happens to cap rates (and commercial real estate investing as a whole) when interest rates start rising. After years of artificially low interest rates, we're starting to see rates finally rise, so strap in and learn how to navigate the waters and get some real life numbers of the true impact.
[1:52] We are definitely in the period of abnormally low interest rates, and the Fed is raising them at a pretty rapid pace
[5:03] We've been spoiled by artificially low interest rates
[7:52] The inverse relationship between cap rates and prices
[12:28] A real life example of the impact of higher interest rates
[16:27] We live in a world where the Federal Reserve and the Treasury don't have to make sense
[21:43] Can the US government afford high interest rates?
[25:59] Why are rates going higher?
[28:58] How to prepare for higher rates
Fri, 16 November 2018
Jason Hartman plays some of his segment from the latest Cash Flow Wealth Summit where he talks about the 6 ways the US government can solve their $220 trillion obligation and which one we can take the most advantage of as investors.
[2:57] The difference between money and currency
[5:50] The 3 basic economic maladies
[8:01] The entitlement society isn't going to change, so align your interests
[9:45] We must understand the motivations of governments and central banks
[11:43] The 6 ways the government can deal with the looming entitlement bill
[19:23] The most likely solution the government will choose
[23:02] Inflation is the most powerful method of wealth redistribution from lenders to borrowers, old to young
Mon, 12 November 2018
Jason Hartman talks with Ross Baird, President at Village Capital Group and author of The Innovation Blind Spot, about where all the startup money is going these days. Venture capital is flowing to tech and everyone's trying to hit a home run, not a bunch of singles. Ross discusses the danger of our current "winner take all" mentality, some options for what to do with the big companies like Google and Facebook, and why sometimes looking in your back yard for an investment is the way to go.
[2:48] Where is all the startup money going?
[5:57] Most people in positions of power and influence are unintentionally leaving out entire swaths of the population
[8:47] We're living in a "winner take all" type society right now
[11:18] The 3 options for what needs to happen to these big public companies
[15:04] You don't always have to look for the next big thing, sometimes you just have to look at what's going on right around your home town
[19:06] Everyone goes for location in real estate, but the better yield is in the non-trophy property
Fri, 2 November 2018
Jason Hartman takes today's episode to look at inflation, the trade war, and how the economy lags behind things like these. To help him with that dissection he brings in one of the new additions to his team, in house economist Thomas. Thomas helps Jason decipher his charts that show how the home sales change along with inflation and mortgage rates. All of these things add up to important tools you can use as you prepare your portfolio for the next recession we all know is going to show up sooner rather than later.
[1:40] What you see when you compare the 30 year mortgage rate to existing home sales
[6:02] Inflation has been announced as mild recently, but how does it impact the economy and attitudes in general?
[7:37] What does the trade war mean for inflation?