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West Lafayette IN | Inflation means that our dollars are worth less. The way to short the dollar is to borrow money. We used equity in farm land to borrow money at 3% on a 30 year mortgage to buy rental condos in Florida. So far, the rental income is more than paying the mortgage and the properties have increased in value by 20% in the last year. It’s completely cash flowing with borrowed money. That’s my idea of how to profit from inflation.
If the value of your stocks increase by 5%, but inflation during the time period increases by 8%, you have a net negative 3%. Real value vs nominal value. A lot of investors won’t figure it this way.
Edited by Dirk Diggler 5/3/2021 12:58
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If it is inflation/hyperinflation
