CW 733 FBF - Jason Hartman Rent-to-Value Ratios, Bitcoin, & The Case-Shiller Index
There\u2019s a nostalgic feeling to today\u2019s Creating Wealth Show as Jason Hartman provides a live recording from the 2014 Meet the Masters event in Orange County, California. This gives listeners a taste of what they can expect from the January 2015 event in Irvine, California, and also provides a good opportunity to see how far the financial and real estate worlds have come over the past months. Key topics covered include the Case-Shiller index, reassessing Rent-to-Value ratios and the development of bitcoin.
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Key Takeaways
04.30 \u2013 Jason Hartman\u2019s investment strategy doesn\u2019t focus on appreciation \u2013 if it happens, it\u2019s a bonus.
07.45 \u2013 Bitcoin and its competing alternative cyber currencies really came about because people are starting to doubt the fiat money Central Banking model that we\u2019ve become accustomed to.
10.50 \u2013 Despite being the most commonly used index, Jason Hartman would only recommend 6 of the 20 markets proposed by the Case-Shiller index.
14.08 \u2013 As humans, we find it inherently difficult to know when to cut losses and just walk away.
15.50 \u2013 Niall Ferguson claims that the most powerful part of the financial system is the bond market, and we would all do well to remember that.
20.09 \u2013 Real estate is not a very liquid market and so even when prices drop, they don\u2019t drop as quickly as most other asset classes.
26.18 \u2013 Rent-to-value ratios change totally if you think about the actual utility cost per month \u2013 how much is your renter paying to use your property, and how does that compare with what you think the value is?
31.23 \u2013 The forms and uses of money have changed many times throughout history, and now we\u2019re dealing with the technological side of currency, which has led us to bitcoin.
39.50 \u2013 Jason Hartman goes through step-by-step considering the relative merits and failings of the dollar, bitcoin, gold and income property.
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Mentioned in this episode
The Ascent of Money by Niall Ferguson
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