In this episode of the High Return Real Estate Show, the hosts of the show, Jack Gibson and Jeff Schechter, talk about predicting the unpredictable and investing during the Trump presidency.
Topics Covered:
- Trump Is Unpredictable…How Do We Predict What Will Happen?
- The Federal Reserve and The Recent Rate Hike
- Trump’s Delay of Obama’s “Fiduciary Rule” and Deregulation Intentions
- Trump’s Intention For “Draining The Swamp”
- Who Is Ultimately Responsible?
- Surviving The Storm
Key Lessons Learned:
Predicting the Future
- Most politicians do not live up to their campaign promises.
- Trump is not used to working in a bi-partisan environment.
- Trump is a businessman, not a politician. He used to take big risks with big potential failures and successes.
- The question is is there less incentive for advisors to give good advice or is there more?
- More regulation always means higher fees.
- Deregulation could lead to higher risks but also higher rewards at the same time.
- There have been good and bad elements to Trump’s intention to “Drain the Swamp”, shrinking the size and role of certain government agencies is a good move but there are many corporate agents in positions of power they probably shouldn’t be.
- The mainstream media has some major problems, objectivity has gone out the window.
- You have to take responsibility for the results in your life. You have to do your best to make the right decisions for your own personal economy. The government will not solve your problems.
Interest Rates
- Leveraging other people’s money is the way real estate investors work.
- The increasing of the interest rates increases the cost of doing business.
- Savings returns are not keeping up with inflation. The artificial stimulus that the government has been pumping into the economy has really hurt savers.
The Storm
- Cash is king in an uncertain economic situation.
- Cash generating rental income will always be in demand.
- Be in a position for the people that will eventually need affordable housing to come to you.
- Own real property that can’t be manipulated by rate hikes or market manipulations.
- Property is one of the few investments that is guaranteed to be around many years from now, that’s not true with stocks.
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