Strategies for investing in inflationary and recessionary times

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Learn professional investor David Campbell's ( www.HasslefreeCashflowInvesting.com ) predictions for the US economy, and strategies to profit from an elongated recession and impending inflation.

In part one of this three part webinar series you will learn:

1) about currency devaluation, why it's happening to you, and what to do about it.
2) why the global recession will get worse and which investments you absolutely want to avoid!
3) how to leverage these "interesting times" to your profitable advantage

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Strategies for investing in inflationary and recessionary times

  1. 1. Investing Strategies for Recessionary and Inflationary Times Hosted by David Campbell
  2. 2. David Campbell Principal or key advisor in over $800 million in real estate transactions Apartments, office, medical, retail, hospitality, winery, condo-conversion,and production home building His companies have held real estate interests in California,Texas, North Carolina, Delaware, Mexico, Canada, and Belize
  3. 3. Why we do what we do Our Philanthropy: helping other people live moreabundant lives by giving the knowledge and support for others to invest with mental tranquility. 3
  4. 4. Disclaimerfor educational purposes onlyNOT investment, legal, or tax advicenothing sold on this webinar 4
  5. 5. Today’s topics1) currency devaluation, why its happening to you, and what to do about it.2) why the global recession will get worse and which investments you absolutely want to avoid!3) how to leverage these "interesting times" to your profitable advantage 5
  6. 6. Currency = Price ??? $40,000 $20,000 ??? ??? $30,000 $10,000 ???Currency creates price confusion 6
  7. 7. Price does NOT = Value
  8. 8. Exchange Value Not PriceCurrency is just another medium of exchange 8
  9. 9. Democracy’s VicesDemocracy is the unequal sharing of blessingsCommunism is the equal sharing of misery - Winston Churchill
  10. 10. True cost of government?
  11. 11. True cost of government? taxes velocity printing
  12. 12. On August 15, 1971, the United Statesunilaterally terminated convertibility of the dollar to gold. November 1955 - April 1975 (19 years, 180 days)
  13. 13. On August 15, 1971, the United Statesunilaterally terminated convertibility of the dollar to gold. November 1955 - April 1975 (19 years, 180 days)
  14. 14. Unlimited spending = unlimited power
  15. 15. Until theparty’s over
  16. 16. You’ve been swindledVelocity: consumer confidence influence over inflation Printing: supply of currency influence over inflation Taxes: reduces supply of currency
  17. 17. What do I do? 17
  18. 18. Don’t panic!We’ve been here before… over and over again. 18
  19. 19. David’s Top 10 List1. Be wise when holding cash or paperinvestments2. Don’t buy bonds3. Get fixed interest rate mortgages.4. Invest in durable goods or commodities rather than in money.5. Invest in things that people will use in any economy.6. Invest for long-term capital gains,7. Avoid short term investments that give deceptive sense of making profits.8. Learn about bartering9. Reduce dependence on things rising rapidly in price (gas / food / imports)10. Buy goods rising less rapidly in price (eg, housing / exports)
  20. 20. David’s Top 10 List1. Be wise when holding cash or paper investments2. Don’t buy bonds3. Get fixed interest rate mortgages.4. Invest in durable goods or commodities rather than in money.5. Invest in things that people will use in any economy.6. Invest for long-term capital gains,7. Avoid short term investments that give deceptive sense of making profits.8. Learn about bartering9. Reduce dependence on things rising rapidly in price (gas / food / imports)10. Buy goods rising less rapidly in price (eg, housing / exports)
  21. 21. If prevailing rate goes DOWN, price of bond goes UPIf prevailing rate goes UP, price of bond goes DOWN 2012
  22. 22. David’s Top 10 List1. Be wise when holding cash or paper investments2. Don’t buy bonds3. Get fixed interest rate mortgages.4. Invest in durable goods or commodities rather than in money.5. Invest in things that people will use in any economy.6. Invest for long-term capital gains,7. Avoid short term investments that give deceptive sense of making profits.8. Learn about bartering9. Reduce dependence on things rising rapidly in price (gas / food / imports)10. Buy goods rising less rapidly in price (eg, housing / exports)
  23. 23. Positive ArbitrageBorrow at 5% invest at 7% 2% profit 23
  24. 24. Negative ArbitrageBorrow at 7% invest at 5% 2% loss 24
  25. 25. Arbitrage ConfusionBorrow at ???% invest at ???% ???% profit 25
  26. 26. David’s Top 10 List1. Be wise when holding cash or paper investments2. Don’t buy bonds3. Get fixed interest rate mortgages.4. Invest in durable goods or commoditiesrather than in money.5. Invest in things that people will use in any economy.6. Invest for long-term capital gains,7. Avoid short term investments that give deceptive sense of making profits.8. Learn about bartering9. Reduce dependence on things rising rapidly in price (gas / food / imports)10. Buy goods rising less rapidly in price (eg, housing / exports)
  27. 27. Exchange Value Not PriceCurrency is just another medium of exchange 27
  28. 28. David’s Top 10 List1. Be wise when holding cash or paper investments2. Don’t buy bonds3. Get fixed interest rate mortgages.4. Invest in durable goods or commodities rather than in money.5. Invest in things that people will usein any economy.6. Invest for long-term capital gains,7. Avoid short term investments that give deceptive sense of making profits.8. Learn about bartering9. Reduce dependence on things rising rapidly in price (gas / food / imports)10. Buy goods rising less rapidly in price (eg, housing / exports)
  29. 29. Medical OfficeLow end retail(price of gas?)
  30. 30. Modest Housing
  31. 31. David’s Top 10 List1. Be wise when holding cash or paper investments2. Don’t buy bonds3. Get fixed interest rate mortgages.4. Invest in durable goods or commodities rather than in money.5. Invest in things that people will use in any economy.6. Invest for long-term capital gains,7. Avoid short term investments that givedeceptive sense of making profits.8. Learn about bartering9. Reduce dependence on things rising rapidly in price (gas / food / imports)10. Buy goods rising less rapidly in price (eg, housing / exports)
  32. 32. Bought IBM stock @ $10 $20,000 2000 sharesSold IBM stock @ $15 $30,000 2000 shares
  33. 33. Bought IBM stock @ $10 $20,000 2000 sharesSold IBM stock @ $15 $30,000 2000 shares Buy @ $20,000 Sell @ $30,000 PROFIT: $10,000 Less Tax: $2,500 NET PROFIT= $7,500 NET CASH = $27,500 NO ENOUGH FOR A CAR
  34. 34. Expenses paid by tenantRent indexed to inflation
  35. 35. Mortgage repaid with devalued currency$500,000 mortgage$25,000 car20 cars$500,000 mortgage$50,000 car10 cars
  36. 36. David’s Top 10 List1. Be wise when holding cash or paper investments2. Don’t buy bonds3. Get fixed interest rate mortgages.4. Invest in durable goods or commodities rather than in money.5. Invest in things that people will use in any economy.6. Invest for long-term capital gains,7. Avoid short term investments that give deceptive sense of making profits.8. Learn about bartering9. Reduce dependence on things rising rapidly in price (gas / food / imports)10. Buy goods rising less rapidly in price (eg, housing / exports)
  37. 37. David’s Top 10 List1. Be wise when holding cash or paper investments2. Don’t buy bonds3. Get fixed interest rate mortgages.4. Invest in durable goods or commodities rather than in money.5. Invest in things that people will use in any economy.6. Invest for long-term capital gains,7. Avoid short term investments that give deceptive sense of making profits.8. Learn about bartering9. Reduce dependence on things risingrapidly in price (gas / food / imports)10. Buy goods rising less rapidly in price (eg, housing / exports)
  38. 38. David’s Top 10 List1. Be wise when holding cash or paper investments2. Don’t buy bonds3. Get fixed interest rate mortgages.4. Invest in durable goods or commodities rather than in money.5. Invest in things that people will use in any economy.6. Invest for long-term capital gains,7. Avoid short term investments that give deceptive sense of making profits.8. Learn about bartering9. Reduce dependence on things rising rapidly in price (gas / food / imports)10.Buy goods rising less rapidly in price (eg,housing / exports)
  39. 39. And two more…Build good support teams now Be a lifelong learner
  40. 40. MARKET CYCLE
  41. 41. MARKET CYCLE BUY HERE
  42. 42. MARKET CYCLE
  43. 43. MARKET CYCLEBUY HERE BUY HERE
  44. 44. Questions / ConsultationDavid@HasslefreeCashflowInvesting.com 707-373-9966

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