At this point I want to say that I am not a registered financial advisor and, in fact, have no professional financial designation at all. However, I am logical when I look at trends emerging and so far my common sense has been rewarded.
Here are my recommendations:
Move More Into Cash. I am going to a much higher cash position. As I talked about with Phil Town on stage about 9 months ago most stocks are fully valued and will likely trade sideways for a long period of time. That is exactly what is happening.
Buy Real Estate For Cash Flow. Real Estate should not be bought for appreciation purposes as that is high risk. Instead, it should be purchased based on great cash flow. I don’t recommend you buy anything for less than a 8% cap rate, as I think in the next few years we will see another massive sale on Real Estate with a huge correction. If interest rates go higher we are looking at a huge correction and even a possible collapse if rates rise fast enough.
My action list is short and sweet. I continue to like deals that pay regular cash flow and will continue to seek out these deals and discuss them at club meetings.
That’s all for now. I look forward to your feedback on my current thoughts.