FFR 44 - Put Time, Mother Nature, and Government on Your Side

If you’ve been listening to Jason Hartman for long, you’ve probably heard him say that he’s not an optimist, but an opportunist. Time, Mother Nature, and Government operate largely independently of us as individuals, so rather than lament the destruction that each of them can cause, we recommend finding ways to make them work in your favor.

Time
You’ve probably noticed that most people have too much life left at the end of their money, and not the other way around. People are living longer and healthier, which means more money is required.

As an investor, longevity can really work in your favor. As we continue to live longer, the government prints more money to sustain us. This causes inflation-induced debt destruction. Essentially, the value of our debts are destroyed—increasing the value of commodities (which make up our income properties). Times, they are a’changin—in your favor!

Mother Nature
Natural disasters continue to happen and create chaos and catastrophe. They displace people, destroy businesses, and create a feeling of uncertainty for everyone. But even large scale disasters can provide a fresh start.

Old homes that are potentially dangerous are replaced by newer, more stable properties. Developers find areas recently affected by natural disasters and pay high prices for pieces of land adjacent to one another, build fancy homes, make a decent profit.
Those who suffer the consequences of Mother Nature sometimes profit from their insurance claims, and those who supply commodities make money in rebuilding efforts. Mother Nature causes upward pressure on the commodities that make up your investments.

 

Government
While you may or may not agree with the way the government spends money, it is important to understand that it just might be good to you as an investor. What you might identify as being bad for the country is good for you—so embrace the positive.
Government spending creates inflation—and that is great for investors!