I transitioned out of real estate and stocks in 2019-2022 and into precious metals, crypto, and ASPS. My portfolio has been doing phenomenal.
Just sharing my investing strategies and knowledge. Hopefully it helps someone out there if your trying to decide to buy or sell real estate in 2022. I’ve studied as much as I can about economics in the last 5 years and the information tells me real estate has much more downside risks for the next 2-5 years as opposed to other investments in 2022.
I was a realtor from 2016-2019 and it was a great run but I knew I needed to diversify. I managed to invest about $30k in 2019 into crypto(65% Bitcoin, Ethereum, Cardano, and a few shit coins), precious metals investments(20% First Majestic Silver, Barrick Gold, physical, and leveraged silver and gold ETF’s), and a foreclosure servicer stock Altisource Portfolio Solutions (15%). These investments almost all saw huge crashes prior to 2019 and looked like they were just sitting on the floor when I bought them. Thankfully I did and now the portfolio is worth over $180k. Most of the gains were all crypto so I converted another 10% of the gains into more precious metals and ASPS. These last few days has proven silver and gold are still the best safe haven investments without wild volatility since their prices surged while the stock market got killed and interest rates surged as well putting downward pressure on real estate going into 2022. The technicals on silver and golds prices look really good based of classical charting principles and could see a 5-10 year bull run if they breakout to new highs.
My theory is crypto and decentralized finance will continue to grow as peoples faith in traditional financial systems whither. As of taxes weren’t high enough, the new $600 IRS tax rule couldn’t be a better example of this and given now how easily people and businesses could now transition into a decentralized and even anonymous financial system, the government is testing waters it’s never seen. Crypto is great but I have been and will be trigger happy to sell going into 2022 and beyond if the crypto market reaches 3-8% of the size of global bonds, stocks, cash, savings, and checkings (we’re still less than 0.75%). Precious metals are the only assets I feel that are severely undervalued without the extreme volatility risk. They have a 6000+ year history of value so its obvious it will maintain value and the mining companies that mine these will have huge profit margins if gold and silver were to pass their all time highs. Lastly Altisource Portfolio Solutions services foreclosures and their stock price surged from $14 to $167 from 2009-2012 when real estate was tanking. Yes their business got crushed recently due to the foreclosure moratoriums, booming real estate market, and record low foreclosure activity. But because foreclosure activity have been soo low, they only have one way to go from here and that is up and they have secured operations til 2030 or more. Harvards 2016 article on real estate cycles also seems to be playing out right on cue as interest rates surge and pandemic stimulus wears off.
https://extension.harvard.edu/blog/how-to-use-real-estate-trends-to-predict-the-next-housing-bubble/
My plan is to start slowly converting my portfolio into a real estate portfolio in 1-5 years. I will probably get whacked and have some deep corrections along the way but so far most of my theories have come true and I did better than ever by not blindly following “experts” and mainstream media.
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source https://www.reddit.com/r/RealEstate/comments/s8czmj/i_transitioned_out_of_real_estate_and_stocks_in/
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