February 2, 2023

Deflation is a general decline in prices for goods and services, typically associated with a contraction in money supply and available credit in the economy. The value of money typically increases. It is often associated with periods of negative or stagnant economic growth — like the Great Depression, the Japanese economy in the 1990s and the early 2000s in the U.S. It tends to describe a declining economy.
Cathie Wood, founder, CEO and CIO of Ark Invest, has made news recently for a sort of spending spree. CNBC explained that her purchases came on the heels of the stock market’s worst sell-off of the year. Yahoo Finance used Bloomberg data to explain how much and what was purchased.
The story isn’t so much about the amount and the specifics of the spending spree; it’s more about the timing. The big spending came on the same day the Nasdaq-100 index posted its worst one-day decline since March 2020.
Investing can be explained as “buy low, sell high,” and Wood made a big bet that now is the time to buy low. She thinks that you should act fast if you’re looking to get the most bang for your buck. Wood didn’t just walk the walk; she is talking the talk. And she’s not alone.
Tesla Inc. CEO Elon Musk is no stranger to controversy or bold predictions. Earlier this month, he shared his thoughts via Twitter and said that “a major Fed rate hike risks deflation.” He asserted earlier this year that recession was inevitable, and last year grimly tweeted that “if history is any guide, not many will make it past the next recession.”
Fed Chair Jerome Powell and Fed Governor Christopher Waller have both warned recently that people should expect a bit of pain as interest rates continue to rise. Inflation is higher than expected, and interest rates will remain above what was initially thought just a few months ago and are expected to stay there for a longer period of time. At its upcoming meeting, the Fed is expected to raise its key short-term rate by three-quarters of a point for the third consecutive time.
If this is all sounding like doomsday, it might be. The Fed’s projected rates haven’t been seen since the pre-2008 crisis. Credit card borrowing rates are as high as they’ve been in decades, and mortgage rates were at their highest point in 14 years last week.
So, with a world in turmoil and experts like Musk and Wood in agreement that people are in for rough times — how can you keep your money safe?
One option is to follow the strategy of Wood herself, who invests in things like DraftKings Inc., Roku Inc., Zoom Video Communications Inc., Block Inc. and various healthcare and telehealth companies.
Or, you could avoid the stock market altogether. Jeffrey Gundlach — the Bond King — recommends Treasury bonds. He sees them as looking better than they have for over 10 years. The billionaire has also shared how to make a portfolio of bonds that could easily deliver 12%.
Finally, you could invest in assets that an inherently limited. When things are scarce, they become even more valuable. In times of turmoil, nothing may be more valuable than land. How can you tap into that market? You could make like Microsoft Corp. founder Bill Gates and invest in farmland. Real estate investment trusts (REITs) like Farmland Partners Inc. and Gladstone Land Corp. are enticing. Also appealing are crowdfunded options like AcreTrader, which allows for fractional ownership and produces great returns.
But land doesn’t just mean farming. Land can also net you the properties resting upon it. Consider this nugget from Arrived Homes CEO Ryan Frazier, who said that real estate investing in periods of deflation “have delivered outsized returns for investors over time.”
Arrived Homes launched in 2021, becoming the first platform to provide SEC-qualified rental property investments to the market through fractional ownership. The company has been backed by Amazon.com Inc founder Jeff Bezos during two funding rounds and has already fractionalized over 160 single-family homes with a total value of over $60 million. 
Real estate is an option that has produced good gains, historically speaking. Even in tumultuous times, the housing market can prove lucrative for patient investors. Investors can even use platforms like Arrived Homes to buy equity shares of rental properties with as little as $100, yet capitalize on the same long-term gains that billionaires like Grant Cordone and Donald Bren have been receiving.
Photo: Courtesy of MoneyConf on flickr and Ark Investment
See more from Benzinga
‘2022 Was The Year The Fed Created The Biggest Renter Boom In America’s History’: Grant Cardone Shares How Investors Can Make The Most Of This Market
‘Bill Gates Is Buying Up Yet More Farmland In A Food Crisis’ Russell Brand Discusses The Billionaire’s Emerging Farmland Monopoly
Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
In a world where the stock market is unpredictable and interest rates are rising, many investors are looking for someplace to put their money that is as close to risk-free as possible – even if it means forgoing the chance … Continue reading → The post How to Buy More than $10,000 in I Bonds Through This Loophole appeared first on SmartAsset Blog.
Slack CEO Stewart Butterfield speaks with Yahoo Finance's Brian Sozzi at the 2022 Dreamforce Conference about why working in-office can be more beneficial to employees than working from home.
Today, with the stock market in meltdown mode, it’s natural to look back at other times of financial woe. The market environment in the 1970s can be particularly instructive.
Yes, there's a lot of economic concerns, but this is a buying opportunity (and things aren't nearly as bad as they seem).
Homeowners beware. But don't panic, either.
Goldman finally decided to stop fighting the Fed and no longer sees the index finishing the year at 4300.
The shipping company has developed a reputation as one of the best dividend stocks around
Warren Buffett’s long-term investment strategy has proven to be successful through virtually all market conditions over the past several decades – recession, high inflation and deflation. If there’s one thing that’s made Buffett one of the most successful investors in history, it’s his commitment to his strategy. A countless number of new investment techniques and algorithms have come and gone over the years, but Buffett has maintained his relatively simple strategy of picking solid companies an
AT&T has been crushed this year, down more than 40% from its high. But now the stock nears a key area on the charts with a 7% dividend yield.
AT&T (NYSE: T) and IBM (NYSE: IBM) both underwent dramatic transformations over the past year. AT&T divested DirecTV, merged WarnerMedia with Discovery to create Warner Bros. Discovery (NASDAQ: WBD) , and sold many of its non-core assets to prioritize the growth of its core telecom business.
No one knows for sure when the next bull market will start, but we do know one thing: There will be another bull market eventually. While there have been several bear markets during that time, none of them have knocked the U.S. stock market off its growth trajectory. In fact, since the average length of a bear market is only about nine months, the current one, which began in early January when the S&P 500 peaked, has already lasted about as long as a typical bear market.
There are two important things everyday investors need to remember during times like these. Shares of SoFi Technologies (NASDAQ: SOFI) have lost 64.6% of their value this year in response to rising interest rates and fear of a recession.
Institutional ownership of single-family homes has been a controversial topic over the past year. Investors purchased a record-high number of rental properties while many would-be homeowners were priced out of the market. The largest owner of this asset class in the U.S. is Invitation Homes Inc. (NYSE: INVH), a real estate investment trust (REIT) with a portfolio of about 83,000 single-family rental homes as of the end of the first quarter this year. The company’s portfolio is mainly made up of
The hedge fund legend has spoken. Pay attention.
If you want to compound wealth in the stock market, you can do so by buying an index fund. But one can do better than…
The recent price decline of 9.0% in The Boeing Company's ( NYSE:BA ) stock may have disappointed insiders who bought…
These are the dividend stocks in the Russell 1000 with the highest forward dividend yield for September.
Thousands of words have been dedicated to explaining Warren Buffett's investment strategy over the years, both by the legendary investor himself and others. All of that, however, can be boiled down to one advice: buy quality businesses at reasonable prices.
Sales have taken hits due to changes in crypto mining, U.S. legislation, and broad shifts in consumer spending.
Market forces rained on the parade of Novavax, Inc. ( NASDAQ:NVAX ) shareholders today, when the analysts downgraded…

source

Leave a Reply