Why Your Investment is Sh!t: Navigating the Quirky World of Modern Investing | Real Estate and Stocks Vs Bitcoin

💛 Best Investments During Stagflation ✨

REAL ESTATE NEWS (Los Angeles, CA) — In the ever-evolving landscape of investment, the term “smart money” might seem like a misnomer. From Wall Street to Main Street, investors are scratching their heads, wondering where the next gold mine lies. Amidst this confusion, Raoul Pal, a wealthy hedge fund investor, made a bold statement: All investments are “dumb” compared to Bitcoin. Let’s unpack this.

Bitcoin: The Digital Gold Rush

Pal’s stance on Bitcoin is nothing short of revolutionary. In his view, traditional investments like stocks, bonds, and real estate pale in comparison to the digital currency. This sentiment resonates with many, especially considering Bitcoin’s meteoric rise. But is it really the financial panacea Pal makes it out to be?

Traditional Investments: Not So Golden Anymore?

Take, for example, the curious case of Downtown Los Angeles (DTLA) lofts. While most loft condos have doubled or tripled, some of these properties, once the epitome of urban chic, have stagnated in value since 2009. This stagnation is a stark reminder that traditional investment vehicles are not infallible. But does this mean they’re “dumb”? Well, 2023 certainly has been plagued by higher interest rates, a bit of tarnishing for some housing markets and reports of impending malaise.

The Risk and Reward Balancing Act

While Bitcoin offers the allure of high returns, it’s a rollercoaster ride of volatility. Traditional investments, on the other hand, offer stability and predictability. It’s a classic case of risk versus reward. Bitcoin investments more than doubled in 2023. Bitcoin has gone up more than 5 million percent in the last 14 years. Bitcoin has always made gains when looking at three year periods. After studying Bitcoin’s short-term, medium and long term gains, many can now clearly see Bitcoin as the proven safe haven, while viewing all other investments as more risky.

Diversification: The Key to Smart Investing?

Perhaps the real wisdom lies in diversification. A portfolio that balances the excitement of Bitcoin with the steadiness of traditional assets might be the smartest play of all! Raoul Pal sees this a a given, already proven — yet still early enough to see a lion’s share of gains. Raoul is now informing the early birds about their next big, juicy worm, A.I. Artificial Intelligence.

Comparison

  • Return on Investment (ROI): Bitcoin has provided astronomical returns for those who invested early and held onto their assets. However, these returns are not guaranteed to continue and come with high risk. In contrast, real estate has offered more stable, albeit generally lower, returns over the same period.
  • Risk Profile: Real estate is typically considered a lower-risk investment compared to Bitcoin. The extreme volatility of Bitcoin makes it a high-risk investment.
  • Liquidity: Bitcoin is more liquid than real estate. You can buy and sell Bitcoin quickly, whereas selling real estate can take months.
  • Market Accessibility: Bitcoin is more accessible to the average person due to its lower entry cost compared to real estate, especially in high-value markets.
  • Impact of Economic Cycles: Real estate is more directly tied to local and global economic conditions, whereas Bitcoin often behaves independently of traditional economic cycles.

While Bitcoin has offered potentially higher returns since 2010, it comes with a much higher risk and volatility compared to real estate, according to the mainstream media. Real estate investments have provided among the best stable growth and the additional benefit of rental income over the last 100 years, although the returns are generally lower than those seen with many Bitcoin investments. The choice between the two depends on an individual’s risk tolerance, investment goals, and market knowledge. While Bitcoin is clearly the king of all investments since 2010, you still cannot live in a Bitcoin. For most people, BTC must be converted into cash, real estate or something else popularly tangible in order to gain a sense of real-world currency.

How Bitcoin became King of All Investments

The rise of Bitcoin as a prominent investment vehicle can be attributed to several factors, particularly in contrast to traditional fiat currencies like the U.S. Dollar. Here’s a breakdown of how Bitcoin has gained this status:

1. Decentralization and Limited Supply

  • Bitcoin’s Limited Supply: Bitcoin is designed with a capped supply of 21 million coins. This scarcity is built into its protocol, mimicking the scarcity of precious metals like gold. In contrast, fiat currencies can be printed in unlimited quantities by governments, leading to potential inflation.
  • Decentralization: Bitcoin operates on a decentralized network, meaning it’s not controlled by any single entity or government. This decentralization is appealing to those who distrust centralized financial systems and government control over money.

2. Inflation and the Devaluation of Fiat Currencies

  • Historical Devaluation of the U.S. Dollar: Since its inception in 1792, the U.S. Dollar has lost a significant amount of its purchasing power. This is mainly due to inflation and changes in monetary policy. The claim that a dollar today is only worth about 3% of its 1792 value highlights the impact of long-term inflation.
  • Bitcoin as a Hedge Against Inflation: Many investors view Bitcoin as a hedge against inflation. Its pre-programmed rising value (through events like ‘halving’) and limited supply contrast sharply with the inflationary nature of traditional currencies.

3. Technological Innovation and Digital Transformation

  • Blockchain Technology: Bitcoin’s underlying technology, blockchain, is seen as revolutionary, providing security, transparency, and efficiency. This technological edge makes it a compelling investment compared to traditional assets.
  • Digital Era and Internet of Money: In an increasingly digital world, Bitcoin represents a shift towards digital assets, fitting well into the narrative of the ‘Internet of Money’.
  • NFT: From McDonalds to Nike to the NBA, crypto blockchain NFT Non-Fungible Tokens are turning into mainstream investments — another exciting, new and proven tech investment. Entar® is in final development stages, with recent limited beta release of the Entar® Real Estate NFT.

4. Market Sentiment and Speculation

  • Speculative Investment: A significant part of Bitcoin’s value is driven by investor speculation. As more people buy into Bitcoin, expecting its value to rise, this demand can drive up prices.
  • Media and Public Perception: Media coverage and public perception play a crucial role in Bitcoin’s popularity. As more people become aware of and understand Bitcoin, its adoption and investment appeal increase.

👑 All Hail the King 🏆

While ₿itcoin has been hailed by many as the “king of all investments,” it’s important to note that this comes with high volatility and risk. Its value can be extremely unpredictable, and while some have seen significant returns, others have faced losses because they bought high, then sold low, or were duped by bad exchanges or fraudsters. The comparison to the U.S. Dollar’s historical devaluation provides a stark contrast between traditional and digital currencies, highlighting Bitcoin’s appeal in a modern financial context. However, like any investment, it’s essential to approach Bitcoin with a balanced understanding of its risks and rewards.

Compare that to a Bitcoin, which was worth less than one cent 14 years ago, and is worth more than $37,000 today. Comparing the historical value of the U.S. Dollar and Bitcoin offers a striking illustration of the changing landscape of value and investment over time.

U.S. Dollar Since 1792

  • Long-Term Devaluation: The value of the U.S. Dollar has steadily decreased since its inception in 1792, primarily due to inflation. Over the centuries, the purchasing power of the dollar has significantly eroded. This gradual devaluation reflects the impact of various economic policies, including the departure from the gold standard and the Federal Reserve’s monetary policy.
  • Current Value: As of now, the purchasing power of the dollar is only a fraction of what it was in 1792. This decline has been a slow, steady process influenced by economic growth, inflation, and changes in fiscal policy.

Bitcoin Since 2009

  • Rapid Appreciation: Bitcoin, created in 2009, was initially worth less than one cent. Over the past 14 years, its value has experienced dramatic fluctuations, reaching peaks that have made it one of the most lucrative investments for some early adopters.
  • Current Value: As of now, Bitcoin’s value is more than $37,000, a remarkable increase from its initial worth. This increase is partly due to its capped supply (only 21 million Bitcoins will ever exist), growing acceptance, and increasing interest from both retail and institutional investors.

Comparison

  • Growth Rate: The growth rate of Bitcoin is unprecedented in the history of modern investments, especially when compared to the slow and steady devaluation of the U.S. Dollar.
  • Nature of Value: The U.S. Dollar’s value is backed by the government and is influenced by economic policies and global trust in the U.S. economy. Bitcoin’s value, on the other hand, is driven by market demand, scarcity, and its perceived utility as a digital asset and store of value.
  • Volatility: Bitcoin is known for its high volatility, with rapid price changes. In contrast, the value of the U.S. Dollar, while declining in the long term, does so in a relatively stable and predictable manner.
  • Risk and Return: Bitcoin represents a high-risk, high-return investment, suitable for investors who can tolerate significant price swings. The U.S. Dollar, while stable, does not offer the same potential for rapid appreciation in value.

Compare

The comparison between the U.S. Dollar and Bitcoin showcases the evolution of what constitutes value and investment. While the U.S. Dollar has been a symbol of stability but slow devaluation, Bitcoin has emerged as a volatile yet potentially high-return digital asset. This contrast highlights the diversification in investment strategies and preferences in the 21st century.

Smart or Dumb?

So, is your investment “dumb”? Not necessarily. It all depends on your risk appetite, investment goals, and the ever-changing market dynamics. Whether it’s Bitcoin or DTLA lofts, the investment world is filled with opportunities and pitfalls. The key is to navigate it with a balanced, informed perspective.


Remember, the world of investment is as unpredictable as it is exciting. Whether you’re chasing digital dragons or betting on brick-and-mortar, the journey is as important as the destination. Stay savvy, investors!

What investments are going best right now while economic stagnation persists and consumer price inflation remains high? Some real estate transactions have completed flawlessly this year. We’ve seen one of our $1+ million home buyers get handily outbid even though he offered $50,000 above asking price on a San Pedro beach home. The rare, desirable properties are still flying off the shelves in today’s real estate market.

Get a free list of the best investments during time of stagflation. Fill out the online form:

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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

Unveiled: How Savvy Investors Are Making Millions in a Stagflated Real Estate Market! — Explosion of Distressed Properties in Los Angeles

A Comprehensive Guide to the Week’s Distressed Properties in Los Angeles

REAL ESTATE NEWS (Los Angeles, CA) — The current economic landscape, characterized by the unlikely cohabitation of stagnation and inflation – or stagflation – coupled with a drastic increase in interest rates, has cultivated an atmosphere of deep economic pessimism. It has dulled the vitality of the real estate market, with the once vibrant property sector witnessing a marked slowdown. An influx of distressed properties, no longer maintainable by their struggling owners, has flooded the market, causing a chilling echo of the 2009 financial crisis.

Stagflation, Interest Rates, and the Real Estate Market: An Unprecedented Economic Challenge

Stagflation, a term that describes the cruel economic phenomenon of stagnant growth coupled with high inflation, has become a household term once again. With the unexpected jump in interest rates in recent years, the landscape of the American economy has been drastically altered, and its impact is being keenly felt in the real estate sector. A sense of economic pessimism looms over the nation, and the real estate market, which is typically a beacon of prosperity, is at its most tepid.

These developments are eerily reminiscent of the financial crisis of 2008-2009, which saw a dramatic downturn in the housing market, with a surge of foreclosures and distressed properties hitting the market. However, the economic conditions today diverge from those of the previous crisis in a significant way. Despite the widespread economic hardship — characterized by some as the ‘Greater Depression of the 2020s’ — home prices remain stubbornly high, largely due to the unvanquished inflation. This phenomenon has left many industry watchers and economic analysts scratching their heads, as they attempt to make sense of this unique and challenging situation.

While the 2008 financial crisis was characterized by rapidly falling home prices, the current economic climate is marked by a paradoxical combination of soaring inflation, economic stagnation, and persistently high real estate prices. Stagflation, as this situation is known, is contributing to a profound sense of economic uncertainty. And yet, the real estate market, while certainly subdued, has not collapsed in the way many predicted it would. This resilience is largely due to inflation keeping home prices elevated, even as the wider economy struggles.

High interest rates are also playing a crucial role. They are effectively discouraging buyers, which, in turn, contributes to a slowdown in the real estate market. Yet, those same high interest rates are also fueling inflation, which keeps home prices high. This creates an unexpected feedback loop that reinforces the stagflation conditions. Because most home prices are not crashing much, and equity is staying in the healthy range, more home owners are staying put longer. Real estate agents, on the other hand, are going broke and scurrying away. There are only about 1/3 as many real estate transactions happening recently, as compared to previous years.

The Los Angeles real estate market is a melting pot of different opportunities for both buyers and investors. One specific sector of this market that has continuously shown promise is the distressed property market. These are properties that are under foreclosure or up for short sales, including those that are distressed due to bankruptcy, probate, lawsuits, or divorce. They may also include properties in need of some tender love and care (TLC), vacant lands, bank-owned properties, and much more.

Understanding these distress signals in the property market could unlock significant opportunities for home buyers and investors alike, and that’s why we’ve prepared a comprehensive analysis of this week’s distressed properties in Los Angeles. The properties are being sold under varying conditions such as as-is, cash sales, motivated sales, and relocation, among others.

This week’s top distressed L.A. property picks:

  1. $649,000, Los Angeles, 2 bedrooms, 2 baths, 1193 SqFt, MLS# 23-240071, 600 W 9th St #309, Yes Pool, 1975 YB, $616.00 HOD, 61 DOM, Open House: 08/06/2023 (2:00PM-5:00PM)
  2. $679,000, LOS ANGELES, 2 bedrooms, 1 bath, 1232 SqFt, MLS# 23-269053, 1325 S Masselin AVE #1, No Pool, 1958 YB, $350.00 HOD, 29 DOM, Open House: 08/06/2023 (2:00PM-5:00PM)
  3. $689,000, Los Angeles, 2 bedrooms, 2 baths, 1394 SqFt, MLS# 23-290963, 416 S Spring St #509, Yes Pool, 1914 YB, $951.59 HOD, 42 DOM, Open House: 08/06/2023 (1:00PM-4:00PM)
  4. $745,000, LOS ANGELES, 2 bedrooms, 2 baths, 1305 SqFt, MLS# AR22166569MR, 645 W 9th ST #216, Yes Pool, 2006 YB, $848.10 HOD, 156 DOM
  5. $789,000, LOS ANGELES, 2 bedrooms, 2 baths, 1290 SqFt, MLS# 23-288553, 2939 Leeward AVE #403, No Pool, 2019 YB, $431.00 HOD, 20 DOM, Open House: 08/06/2023 (1:00PM-4:00PM)
  6. $795,000, LOS ANGELES, 2 bedrooms, 2 baths, 1366 SqFt, MLS# GD23132279IT, 1887 Greenfield AVE #212, Yes Pool, 1974 YB, $625.00 HOD, 42 DOM
  7. $810,000, Los Angeles, 2 bedrooms, 2 baths, 1234 SqFt, MLS# SR23144676MR, 800 W 1st St #2010, Yes Pool, 1968 YB, $1,530.00 HOD, 118 DOM
  8. $875,000, LOS ANGELES, 1 bedroom, 2 baths, 1260 SqFt, MLS# WS22236561MR, 7250 Franklin AVE #407, No Pool, 1964 YB, $903.00 HOD, 10 DOM
  9. $899,000, LOS ANGELES, 2 bedrooms, 2 baths, 1537 SqFt, MLS# SR23057688CN, 10701 WILSHIRE #604, No Pool, 1964 YB, $1,600.00 HOD, 89 DOM, Open House: 08/06/2023 (1:00PM-4:00PM)
  10. $998,000, Los Angeles, 2 bedrooms, 2 baths, 1483 SqFt, MLS# 23-277793, 11706 Montana Ave #311, No Pool, 1973 YB, $528.00 HOD, 30 DOM

In addition to these, there are several other distressed properties scattered across Los Angeles and throughout California, each offering unique opportunities for buyers and investors. From properties that are ready to move in, to those that are unfinished, raw, or even ready for a tear-down, there is something to suit various tastes and investment preferences. Each property comes with its unique features, pricing, and potential for returns on investment.

In a peculiar departure from the script of the past, inflation remains unchecked, stubbornly propping up home prices in real terms, even as we grapple with the harsh realities of the Greater Depression of the 2020s. This creates a challenging paradox: even amidst an overabundance of properties for sale, the elevated prices, fueled by unrelenting inflation, create a barrier that prevents many potential buyers from taking advantage of the situation.

Meanwhile, the amount of distressed properties on the market has exploded. This is not only a product of the current economic downturn but also an indicator of its severity. However, unlike in 2009, when low prices led to a surge in property sales, the current high prices — maintained by inflation — are causing these distressed properties to languish on the market. This situation underscores the unique economic conditions that distinguish the current downturn from previous ones.

While this state of affairs is undoubtedly challenging, it also provides opportunities for savvy investors, particularly those with plentiful resources. Despite the economic gloom, those with great means are finding value in the distressed property market, picking up assets in anticipation of a future rebound. As the rich get richer and the poor get poorer, the valuable locations are hot. While sketchy properties plummet run price, Beach homes and other quality real estate are doing better than ever.

The current situation serves as a reminder of the cyclical nature of economies, and while comparisons to previous downturns are useful, each crisis brings with it a unique set of conditions and challenges. In this ‘Greater Depression of the 2020s,’ we are grappling with the stubborn foe of inflation, making the road to recovery that much steeper.

Ultimately, navigating these troubled economic waters will require innovative thinking, resilient policy-making, and perhaps most importantly, the courage to make tough decisions. The real estate market, a cornerstone of the American economy, will play a critical role in the recovery process, just as it has done in past downturns. However, success will depend on our ability to understand and adapt to these unprecedented economic conditions.

As a prospective buyer or investor, it’s essential to conduct a thorough due diligence process before making a purchase decision. Remember that while distressed properties can be attractive due to their typically lower prices, they may also come with their own set of challenges. For instance, properties described as “ugly” may require significant cosmetic work, while those under litigation or bankruptcy may involve complex legal processes. Therefore, it’s advisable to consult with real estate and legal professionals during your purchase process.

For international types, Mallorca, Spain has made a tidy sum over the last 12 months. China’s housing market is so worthless, they are rushing to buy American homes.

The distressed property market in Los Angeles is brimming with opportunities. With careful research and due diligence, buyers and investors can find valuable deals that meet their specific needs and investment goals. As with any investment, it’s crucial to consider the potential risks and rewards, and to make informed decisions that align with your long-term goals.

Get a free list of distressed lofts, fixer lofts or upscale homes. Fill out the online form:

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.