Jul 28, 2022
Summary:
With inflation, the war in Ukraine, and supply chain disruptions,
the most pressing problems in the nation right now are clear. To
get some perspective on solutions, I talk to Eddy Gifford—whose job
as a wealth advisor is to critically think through these problems
and help others subsequently implement investing strategies.
Interacting with the market during inflationary, uncertain times
requires identifying what type of market we’re in and thinking
through all of the possible outcomes. This is what Eddy refers to
as being proactive with investing methodology, and you can learn
more about it during this episode.
Highlights:
-Eddy Gifford is a wealth advisor who is also into alternative
investments
-Cryptos have gotten slammed—Bitcoin is down two thirds and could
go lower
-The one alternative investment holding on so far is real estate,
but it has an inverse relationship with interest rates. Property
costs have doubled
-When you’re dealing with something like cryptocurrency, it’s not a
buy and hold situation
-Traditional diversification doesn’t work in bear markets—it’s more
about diversification of strategy. We need to be proactive with our
methodology—analyzing why one would buy or sell something
-It’s important to pinpoint what your mass loss is
-So how do you approach the market? First, you should identify
whether the market is a bull market or bear market and the
appropriate strategies based on which one you’re dealing with
-Once you own, have targets in place
-Buying everything for the sake of buying everything is not a
recipe for success
-Just because we’re going to be positive over the next few months
does not mean this is indicative of recovery
-We could end up in a situation where some of the big names have
poor earnings\
-It’s okay to have some cash on the sideline right now—it’s not a
bad thing to be sitting in cash when the market is down
-If you’re going to go all in, it’s good to have some sort of hedge
in place
-Commodities are more volatile in general than the stock market as
a whole
-The inflation we’re dealing with now is a three headed
monster—some of these things can’t be fixed with interest rates
-A word of advice - focus on what you control. Focus on paying off
credit cards to reduce debt, plan your day to be efficient with
fuel/time,
Useful Links:
Financial Survival Network
Tactive - Eddy Gifford