How To Profit From HUGE Inflation Ahead ...

inflation is ramping up to the highest levels we've seen since the 2008 crash and it's making things very expensive like if you go shopping at costco the prices of things are shooting up and fast food prices have been skyrocketing and the prices of home and housing costs have been going through the roof so if you want to know what's going on and how you can profit from all this inflation that we're seeing make sure you watch this video until the end what's up everybody i am desperate singh from the minoritymindset.com where money minds rethink rich between 2020 and 2021 countries around the world including the united states printed trillions and trillions of dollars the whole purpose behind this money printing was to help stimulate the economy and give money to people and businesses when the whole world was shut down well this kind of was a band-aid type of approach because that gave people a short-term solution to the problem which was the whole economy was shut down but now we are paying the price of all this money printing because this money printing caused the value of our dollars to be diluted and now the prices of everything from your groceries to your housing to your food costs have been shooting up now what you want to do is be financially educated and know what's going on and how you can profit from what's going on which is what i'm gonna be talking about in this video before we get into that i need you to do me a quick favor and smash that thumbs up button below and if you have not already be sure to join our guac talk server on discord now we can chat with other minority master thinkers our minority mindset chat room is completely free and you can talk about the stock market the real estate market the cryptocurrency market builder wealth and all other things minority mindset so if you haven't joined the minority mindsets guac talk server we call it guac talk because as we all know extra walk is a symbol of wealth i got the link to how you can do that for free in the description below here's the agenda for today first we're gonna start talking about why we're seeing this massive inflation right now second i'm gonna go over how you can profit from this massive inflation that we're seeing and third i'm gonna be talking about the risks because there are some risks to our economy with everything that we're seeing going on right now so let's start with number one why are we seeing this massive inflation but most people try to envision what inflation is they think of the price of things going up i go to buy extra guac and now instead of me paying two dollars and fifty cents i gotta pay three dollars and fifty cents or when i go to the gucci store instead of paying six hundred dollars for purse now i gotta pay seven hundred dollars per purse but that's not exactly true inflation is actually when the value of your dollars get diluted so you could think of it kind of like your money gets a demotion now this 20 bill doesn't have as much buying power and so you need more dollars in order to buy the same things that you wanted before you can think of it kind of like supply and demand when you don't have a lot of dollars out there the value of each dollar is a lot because there aren't that many dollars out there but now if you massively increase the supply of dollars and everybody has a lot of dollars now the value of each dollar isn't as much because you have a massive supply of dollars this is where things get a little bit complex because you have to ask yourself what value do dollars actually provide because at the end of the day your dollars are really just a piece of paper i mean it costs 12 cents to print a hundred dollar bill see the value that your dollars have don't actually come from the dollars themselves the value that your dollars have come from the government because the government has said that these dollars are our fiat currency which means this is the thing that we can use to exchange to buy and sell things that's a good thing because it makes it very easy to value things because i can go to a store and i can see that this whiteboard is going to cost me 50 and it's very easy for me to understand what 50 is today and so if i want to buy this i can just give the 50 so that's the benefit of having this fiat currency the downfall is the value of your dollars are kind of controlled by somebody who's not you you don't get to control how many dollars are in circulation and so let's say you have a hundred thousand dollars in the bank well the value of this hundred thousand dollars is really gonna depend on how many dollars are in our economic circulation if we have a ton of dollars in our economic circulation the value of a hundred thousand dollars or the buying power of a hundred thousand dollars is not going to be as much as it would as if there were less dollars in the economic system i'll show you what i mean the reason why you started to see the price of things skyrocket in 2021 was because in 2020 and the early part of 2021 the government worked with the federal reserve bank to print trillions of dollars and this trillions of dollars were used to fund the stimulus programs to fund bailouts and just to help keep the economy rolling so this was trillions of dollars of brand new money that was created by the government and the federal reserve bank and this money was injected into our economy now this gave our economy a short-term benefit because a lot of people had a lot of money very quickly but now you had all this extra money in circulation and once it started to flow through circulation the value of each dollar started to drop which made the price of things your groceries your rent food costs go up so i got the cnbc article that's talking about costco and the inflation that they're seeing in the prices of their goods the cfo of costco says quote inflationary factors are bound the reason why he's saying that is because he thinks higher labor costs higher freight costs higher transportation demand along with container storage and portage delays so you have the higher cost of all these things and a higher demand of goods which is pushing the price of things up and because of that it is more expensive for you to go out and shop at costco but it's not just costco you're saying this across the country at every single store because every single store is having to pay more money for labor they're having to pay more money for the cost of their goods what's interesting about costco is they fight to get the lowest prices on goods that way they can give you an affordable price when you go and shop at costco and so they're facing a real kind of struggle here because the cost of their items are going up but they also don't want to raise the price of their goods for you too much and so what they say is like other companies costco wrestled with passing costs on the consumers and they expect that they're gonna see margin pressures which means that as the price of things go up their profit margins are going to shrink so unless they raise the price of their goods they're not gonna be able to maintain their margins and have any more profit prior to 2020 and 2021 we were seeing an average inflation rate of about two percent a year now it is going up way faster than that like costco have seen their apparel items grow by three to ten percent in just a year what that means is if inflation stays like this it is going to be harder and harder for people to survive because people's wages are not growing by three to ten percent a year while the price of things are skyrocketing so if your wages are not keeping up with the price of things eventually we're going to hit a point where people cannot afford the cost of living we're also seeing a major labor shortage which is pushing the price of things up because now if costco wants to be able to sell their things and this is not just costco i'm just giving costco as an example but if any store wants to sell their things they have to have employees working there well now the cost of these employees is skyrocketing because not only are companies having to pay you a good wage but now you're having to compete against unemployment because there are a lot of people that are sitting on unemployment right now thinking why would i go back to work and make less money working every single day when i can just sit at home and collect unemployment checks and so this right here is a double-edged sword because on one hand people are going to say well that means the companies are not paying them enough and so they need to get a decent wage and so it's better for them to sit at home but at the flip side if you're sitting at home and you're being funded by the government that means the government is having to print more money which is causing more inflation which is causing the price of things to go up which is also pushing wage costs up too now on one hand this higher wage cost is a good thing because people are making more money but on the flip side if companies have to pay more money to sell their stuff and to make their stuff that means the price of things are gonna go up too so it's a very kind of touchy situation with a lot of different issues at one time the interesting thing about this is companies are getting smart too because they know that the price of everything is going up and if the price of everything is going up then people are naturally going to have less money to buy their things so what companies have been doing is making the size of the products smaller so you get less things for the same price as before so the whole concept of companies selling you less stuff for the same price as before is called shrink flation and the washington post did a really good write-up on this where they talked about many different companies that are doing this right now because now if you go shopping you might be getting a lighter bag of food you might be getting a smaller can of drinks you might be getting thinner rolls of paper and all these things are on purpose that way they can get you less stuff for the same price that way it doesn't feel like you're paying more money because businesses understand that consumers are going to have higher grocery bills so they're just selling you less stuff at the same price as before so what's happening well the price of everything is going up the price of labor is skyrocketing the price of our goods is skyrocketing and so what's happening is the price of your groceries and the price of everything is going up and on top of that when you go shopping you can buy something and get less of it so things are getting more expensive because of all the money printing that we've been seeing and this brings me to number two how do you make money because of what's happening now the way that you profit from this type of inflation is first by converting the money that you do have into an asset that will grow in value because of this inflation the whole idea here is we live in a country that runs on dollars and so if the value of our dollars are dropping you want to convert your dollars into something else that does not drop in value something that at least maintains its value so as the value of dollars drop the price of the asset that you own is going up or at least maintaining its value even as dollars drop so if this thing is maintaining its value it's gonna cost more money to buy it in the future because the value of dollars are dropping and you want to own this asset right now before it gets more expensive now before i go over a few examples i do want to let you know that if you are interested in learning more about things like this money management and investing we have a free guide on money management and investing that you can read for free when you subscribe to our free daily newsletter so if you want to learn more and see how you can start building your wealth and investing your money the right way i got the link to how you can download our free guide in the description below i'm going to start with my personal favorite so my favorite way to go about this is by investing your money into real estate and the reason why i like real estate is because when you invest your money into real estate you want something real something physical something tangible this is something that you can see feel and touch and even as you wait you can get paid i'll show you what i mean so if you go out and you buy a home and this is going to be a home now for you to live in this is going to be an investment property a rental property so now you're going to buy this home and what you're going to do instead of you living there is you're going to rent out this home to somebody else so you find this nice couple right here this person has a beautiful mustache and this lady over here has a beautiful braid or as we like to call it in my native language punjabi a good you find this couple you move them into your home and now they start paying you 1 000 a month every single month just for living in your property so now you own a physical asset and you're getting cash flow for owning the asset here's where things get interesting especially if you're talking about inflation so the thing that everybody pays attention to is the value of your home let's say you bought this home for a hundred thousand dollars if you continue to see more inflation if home prices keep going up then maybe in the future this home will be worth 150 000 dollars but when i invest in real estate i don't really care about this what i'm paying attention to is this right here this cash flow because now what you got to understand here is when you buy this property you have just also built a brand new stream of income and the stream of income is passive if you do it the right way because now this tenant is living in there and they're going to pay you every month for living in your property you don't got to go to work every single day to get this paycheck and you don't really have to do much work to manage this property if you hire a good property management company but what they're doing is they're living in your property and they're gonna pay this thousand dollars every single month just for living in your property and if you do this correctly this one thousand dollars that you're getting every single month is going to cover your property taxes it's going to cover your property insurance it's going to cover your maintenance your mortgage and all of your other fees and put some money in your pocket every single month so you're getting this thousand dollar check every single month you use this money to pay all of your bills and put some money in your pocket and now if inflation happens guess what else is gonna happen rent in this area is gonna go up from a thousand dollars a month to twelve hundred dollars a month so guess what happens over the years you can also raise your rent to 12 hundred dollars a month because as time goes on and if you continue to see inflation housing costs are gonna continue to go up which means the rent money that you're gonna make is also going to go up so if you own real estate investments you're getting this cash flow and if inflation happens you also get to increase your rent because the price of everything else is going up and if home values go up two you also get this but this is just the icing on the cake when you're investing in real estate i don't want you to make your investment decisions based off of this i want you to make investment decisions based off of this because if your property is profitable here which means it's paying off all your bills and is putting some money in your pocket every single month well now even if home prices crash you'll be okay because your property is profitable this is what i want you to pay attention to and i know buying real estate is not like a walk in the park you got to learn how to deal with property managers tenants contractors attorneys and everything in between so there is more work involved to buy real estate but it can be a very good tool for you to beat inflation because you get the cash flow and you also get the hard asset the second way that you can profit from this inflation is just by owning some of the companies that are now selling products because as companies have to charge more money they're gonna see bigger revenues assuming people keep buying their products because the price of the products are higher and so now if you are the owner of this company well now you're benefiting from inflation because the company that you're invested in is making bigger revenues now that might not mean that they're selling a whole lot more products they're just making bigger revenues because the prices of the things have to go up and so you as an investor want to be on the producer side of things the one that's selling the products not just the consumer that's having to buy the products this is what financial education is all about you don't want to just be the consumer you also want to be the producer because the producer is the one that's making the money when you invest in stocks you are buying a piece of ownership in a company so if you go out and you buy one share of mcdonald's or lululemon or chipotle or amazon or tesla or whatever company you want you become one of the owners of these companies now with one share you don't get to tell the company what to do but you do get to share in the profits when the company makes more money so if you go out and you start investing in some of your favorite companies and now you own some of these companies and you see more inflation happen and they're having to raise the price of their products because their costs are going up so that way they can maintain their margins and people keep buying their products well now you're going to be on the winning side of things because now you're not just the one that's buying all these more expensive things you own the thing you own the company that's selling these products and if a company is seeing growing revenues generally you will see a stock price going up the third thing that you can do is invest in commodities this would be something like gold now this is different than your other investments because when you invest in gold you're not buying something that is creating more value because when you invest in real estate you're investing in something that's creating value because you have just created a home for somebody somebody's living there they want to use your property they're going to pay you rent for doing that and if you own this property in a great area the property is going to become more valuable because there's going to be more demand for that property same with stocks if you go out and you invest in amazon or apple or lululemon or chipotle these companies are working very hard to create new products to sell products and to give more value to consumers that way they can be more valuable gold on the other hand is a little bit different gold doesn't really do much when you buy physical gold it just sits there and looks back at you so it's not creating more value when you're buying gold you're buying it really just as a store of value because you can't just print gold the way you can are dollars so if you're really worried about the value of our dollars dropping then you can buy physical commodities like gold kind of as a hedge against that inflation because i own something which is a real representation of value because gold in order to get it you have to physically mine to get this gold so it takes labor to get this gold which is what you're buying when you own a bar of gold now if you want my personal opinion this is not financial advice just my personal opinion i wouldn't worry about buying physical gold until you have other investments set up i want you to get your cash flow set up i want you to have other investments and really build your wealth that way you have passive income you have cash flow that way you can live your life the way you want and now when you're really worried about preserving the value of your wealth and your dollars that's when you can buy some gold because your gold that you have is not going to earn you any cash flow it's not going to pay you any dividends and it's not creating more value so i rather you invest your money as you're trying to build your wealth into something that's building more value instead of just buying something that's trying to just preserve its value and the last thing that i want to mention on this is cryptocurrency because as we all know cryptocurrency has been very popular recently now cryptocurrency has a lot of speculation it has a lot of people that are trading the market which makes cryptocurrency very volatile and so if we talk about just as a protection against inflation cryptocurrency does have its place because the whole idea behind cryptocurrency especially things like bitcoin is you cannot create more of this coin out of thin air it has to be mined it takes work to do that and so that's what gives these coins value but there's a lot more to cryptocurrency than that because there's more value behind the blockchain there's more value behind the usability of cryptocurrency which makes it kind of hard to evaluate just as a currency and so if you want to put some money into cryptocurrency that's fine but i want you to understand that there's more to cryptocurrency than just trading it for a quick box there's a lot of future potential behind it and i'm not going to get into all that in this video the thing that i just want you to understand about cryptocurrency is if you're worried about this inflation happening i want you to own some of the other things that i talked about and this can be one of your kind of subsidiary things i want you to own too because yes there's a lot of future behind this but there's a lot of speculation in that too and i want you to have some for sure things that can protect you instead of just trying to bet on something and hoping you hit the right coin and this brings me to the third thing that i want to talk about which is the risks associated with everything going on in our market and our economy right now if you've been paying attention to the financial news in any way shape or form chances are you've heard people talk about a potential housing market bubble it potential stock market bubble and a potential economic bubble that's brewing the whole idea behind that is you have all this money that's been printed causing this new inflation that's going on and at the same time people have a lot of money right now people are still living off of some stimulus checks people are still getting these unemployment checks and on top of that a lot of people are not having to pay their mortgages because of this mortgage forbearance program and people are not having to pay their student loans because of the student loan forbearance program so people have extra money every single month and people are using this money to invest people are using this money to put it in the market people are using this money to go out and spend and eventually this is going to come to an end eventually we're going to get to the point where people are not going to be able to put their mortgages and student loans on forbearance anymore and so people are going to have to start making their mortgage payments and so people are going to have to start making the student loan payments again when that happens people are going to have less disposable cash to go and buy things to go out and shop and to put more money into the market and so when people have less money in their pockets in their hands you're going to have less people who have money to go out and invest and less people who have money to go and just spend money and so now if we hit that point and the prices of things are way up here and the amount of money that people have is way down here you're gonna see a discrepancy it's gonna be harder for people to go out and just shop which means companies might start making less money and if at that time as well interest rates also go up it's gonna be less attractive for people to go out and buy a home which could bring housing prices back down so the thing that i want you to understand about this is not that you shouldn't put your money into these assets and to invest your money because there's a risk of a correction or a potential crash in the future is that i want you to understand the risks associated with it because yeah there are risks associated yeah there's a chance that we could see a market crash happen but nobody knows when that could happen and nobody knows how big it will be so what i want you to do is when you make your investment decisions today make sure you're not investing more than you're willing to lose because yeah there's a chance things come down but when things come down what i want you to do then is just come in and buy more because when asset prices come down it is a discounted price for you to come in and invest your money so yeah there is risks associated with it okay there's no ifs ands or buts about that but what i want you to understand is what the risks are and make sure you make investment decisions accordingly if you enjoyed this video here's the video on building wealth that i think you'll love and while you're at it download a free money management pdf and as always keep hustling but in the long run what really affects the stocks price is its fundamentals that's how much money is the company making how are their profits looking are their revenues growing are their profits growing how is the management and are they innovating for the future so these are the things that really affect the company's stock price over the long term

Channel: Minority Mindset

Views: 290,809

Keywords: minoritymindset, minority mindset, minority123, jaspreet singh, rethink rich, financial education, financial literacy, money management, money management 101, money management for beginners, investing, stock market investing, real estate investing, cash flow, passive income, investing for beginners, how to build wealth, build wealth, become wealthy, crypto, cryptocurrency, bitcoin, inflation

Id: opXsVHP2H4I

Length: 20min 26sec (1226 seconds)

Published: Fri Jun 18 2021