There’s talk of inflation, stagflation, and rates going up—is it too little too late? David Stryzewski joins us in this episode to discuss why this time will not be different, emphasizing that the true cause of our current economic turmoil stems from supply issues. With this in mind, currency continues to spiral downward, and the next crisis will come as a result of adjustments on the earnings side of things. Nonetheless, there are a few investment opportunities to take advantage of in fluctuating markets—fixed index annuities being particularly opportunistic right now. Listen in as David shares information that is relevant to the current situation and strategies to pull you through uncertain times.

-A lot of what policy has been doing is actually making inflation worse
-Affording life is becoming a lot more expensive
-The consumer is 70% of our economy today
-41 and a half years account for a full cycle. The Fed cannot continue to raise rates like this
-Inflation comes from spending, but how did we not see the problem earlier? We didn’t see it because these dollars went into the banks, and banks were lending out money for mortgages
-More millionaires have been made in real estate over the years than any other industry
-These dollars got out into society, and the catalyst for inflation going through the roof was Biden’s administration
-When the Fed raises rates, the goal is that the consumer can borrow less and has less purchasing power
-As much as we believe “this time will be different,” this is rarely the case
-Analysts today are looking at earnings and noting that companies are making the same amount of money as they were in previous years. This is merely because prices are so high
-What we’re going through right now has always been a supply crisis
-The Fed essentially doubled mortgage rates, which has created a huge challenge. Rates have gone up about 4%
-Who affects supply? Right now, no steps are being taken to fix the supply issue
-Migration changes within the US are probably going to slow down
-Builders are in a very difficult spot today; it has been extremely expensive to acquire property to build, and to get the assets needed to build. Approvals have also become more troublesome to get
-Corporations are borrowing
-In regard to pensions, it’s going to be the American consumer that feels the pain of this
-We’re about to see the earnings side of things get adjusted, which is what the next crisis will stem from
-Hedging is known as taking a long position but having some defense in the event that things don’t work out
-You can make money in down markets; you just have to know where to go. You have to learn to understand cash, protected assets, and risk assets
-Bonds can lose money in five major ways
-Fixed Indexed Annuities have the ability to give you upsides when markets are going up, down, and sideways. They provide more certainty, and there has never been a better time to own these
-Utilize an asset class that doesn’t follow the same rules to reduce risk and increase returns
-Protected assets have less liquidity
-In the short term, we’re seeing a bit of a relief rally

Useful Links:
Financial Survival Network
Sound Planning Group

Direct download: David_Stryzewski_15.Nov.22.mp3
Category:general -- posted at: 8:01am EST

Printing money during the pandemic has unsurprisingly caught up with us. What does this mean for interest rates, real estate, and our everyday finances? Debbie Bloyd comes on the show to talk about some of the most pressing consequences of inflation—the shift in the psychology of the housing market being a major one. Since rates today are nearly double what they were last year, buyers have lowered their budgets and accepted that this is the new normal. There is not much that we can do to change these circumstances, but Debbie talks about the things we can control, such as leveraging the money you already have and looking to buy rather than rent when possible. Tune in for more great insights from Debbie.

-The decisions being made in D.C. have major consequences. We printed a lot of money to help people during the pandemic, but the effects of this catch up with us at some point
-It is costing people to live more now than ever before
-A lot of people on fixed income are struggling
-Rates today are 7.7%—almost double what they were last year
-People that wanted to buy houses last year decided to wait it out, but have now lowered their budget due to the increase in rates
-On the flip side, home prices have gone down a bit
-There aren’t going to be people buying homes unless they have the money to spare
-People are waiting for prices to drop, but we have to accept that this is the new normal
-The people that are going to move are the people that need to move, and the housing market is going to calm down. Debbie predicts that people are going to sit still for the next few years
-Leverage the money that you have. When it sits in the equity of your home, it doesn’t gain anything
-Put your money into an investment that makes more than your mortgage
-If you’re moving from somewhere that has more expensive real estate, prices in states like Florida seem like a bargain. It’s important to remember that real estate is relative
-The Fed won’t pivot for a while, according to Debbie. They will raise rates again one more time next year; the situation isn’t changing for the next 6-8 months
-Home buying is still a better option than renting from a landlord

Useful Links:
Financial Survival Network
Money Strategies with Debbie

Direct download: Debbie_Bloyd_16.Nov.22.mp3
Category:general -- posted at: 8:00am EST






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