With the Fed creating money out of thin air, real estate prices such as commercial and condos are going up like crazy especially in places like New York City and Miami. My family was in Key West in March and I can tell you restaurants aren’t lowering their prices. And there’s a ton of money in certain pockets. I’ll use the boat racing teams in Key West back in November as an example. There’s no shortage of spending power on toys here. Check out Miss Geico, which won the event.
But again there’s deflation too. For retirees it’s a brutal deflationary environment for interest bearing savings accounts. That’s why it’s crucial that you get out of debt. The buying power of the dollars I used in Paris last Spring was pitiful. It’s hard to believe that in a fiat currency world any currency, including the dollar, can be a long-term store of value.
You need to maintain your dividend religion. The dividend paying companies we own for clients pay well above the miniature dividend of the average S&P 500 stock. Make sure you’re getting paid to invest in this market. Investors that bank on capital appreciation alone are going to be in for a rude awakening.