Posted 5/3/2021 12:51 (#8985073 - in reply to #8984923) Subject: RE: If it is inflation/hyperinflation
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.