On The Market The 2025 "Asset Bubble" is Ballooning: Is It Time to Hoard Cash?
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Feb 17, 2025 In this discussion, Jay Scott, a seasoned real estate investor and author of "Recession-Proof Real Estate Investing," shares his current shift in investment strategy amid a swelling asset bubble. He questions whether it's time to hoard cash instead of investing in overpriced assets like real estate and stocks. Jay reveals his thoughts on diversification, the importance of facing economic uncertainty, and how he would approach a $100,000 investment today. He emphasizes the risks of overvaluation and the potential opportunities that may arise.
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Cash is King
- Hold cash in a high-yield savings account, CD, or treasury bonds.
- Cash provides downside protection and opportunities to buy assets when they drop.
Asset Bubble
- Many asset classes, including real estate and stocks, are in a bubble due to inflation and increased money supply.
- This overvaluation is unsustainable, and government intervention may only delay a potential crash.
Florida Real Estate
- J Scott is selling Florida real estate due to softening prices, increased expenses, and decreasing population growth.
- He bought these properties before COVID and profited from appreciation, but the risk-reward profile has changed.
