If you were a part of today’s youth under the age of lets say 20, what things would jump into your mind when someone asks of your opinion on investing? Would you spontaneously start spouting off the hottest market trends such as NFTS, Cyber Real Estate, meme coins or even Pokémon cards? I mean who could argue when some of these assets are selling off in the hundreds of millions in little to no vehicle time whatsoever. I want to make it clear that this post is not meant to dissuade the speculators from the higher risk trades, but it is meant to shed some light on how the internet and social media has skewed the realistic definition of investments. In my honest opinion, I really like the idea of cryptos because most are decentralized and the market dictates it’s worth at any given time as opposed to just creating more supply out of thin air to balance over leveraged books *cough cough*.
Investment
Investment is the dedication of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. We are growing up in the era of short form content and bordering the lines of overconsumption when looking into GDP vs imports. I know the experts first line of defense is stating that overseas labor is more cost-effective and with that I totally agree. The bigger issue that comes to play is: what happens when a main supplier of our goods hits a political fallout that spirals the country into chaos (this is more probable in our day and age more than ever)?
If the above information were to ever come to fruition… my argument is that in the wake of the collapse it would in theory take longer to build fresh supply lines and manufacturing plants for the items that are deficient especially with the USD losing value YOY (Year Over Year).
So what am I getting at here? Holding money in a bank you are at a loss and the same can be said with treasury bonds in their current state. That leaves some of the more traditional investments such as stocks or real estate. The common misconception that people carry is that “it costs money to maintain a house!” Yes, that is a valid point. Yet almost every person holds the highest depreciating asset which is a car and those have been proven to cost anywhere from $400 -$2500 to maintain annually. Every investment carries an amount of risk no matter what it is but real estate proved its worth during the pandemic with a national spike of almost 20% in some places. Even with the market calling for more real estate, it came to a point where it could no longer be produced at reasonable prices and thus the secondary market became the new primary (I like this because it is more difficult to create a home out of thin air as opposed to a paper currency not backed by an asset).
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