Lesson 21: Using Real Estate to Build and Preserve Wealth in a Volatile World Economy
December 3, 2019
Review:
- Exam 3 Results
- Course Evaluations
- Final Exam on Wed Dec 11 at 10:30a in HSB 110
- Review for Final Exam on Thu, Dec 5
Presentation:
- Nature of wealth
- Contracts
- Physical Assets
- Collateral
- Inflation, deflation and volatility
- Precious Metals
- Bitcoin and other Cryto-currencies
- Impact on existing monetary system
- Future of the US Dollar as the World’s “Reserve Currency”
- Fed, BoE, BoJ, ECB
- ZIRP = Zero Interest Rate Policies
- QE = Quantitative Easing (money printing)
- BRICS = Brazil, Russia, India, China, South Africa
- Currency wars
- Advantages of Real Estate
- Physical asset
- Inflation hedge
- Opportunity in an “inefficient” market
- Enduring value
- Relatively easy to insure
- Disadvantages of Real Estate
- Vulnerable to local market deterioration
- Vulnerable to deflation
- Vulnerable to natural hazards
Assignment:
- Study for Final Exam