On The Market

The 2025 "Asset Bubble" is Ballooning: Is It Time to Hoard Cash?

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.

43:18

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Episode guests

Jay Scott

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Episode notes

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Quick takeaways

Diversification across asset classes is essential for building resilience in investment portfolios amid today's complex economic landscape.

Holding cash provides investors with flexibility to seize opportunities during downturns, allowing them to mitigate risks associated with declining asset values.

Deep dives

The Importance of Portfolio Diversification

Diversification across various asset classes is crucial for building a resilient investment portfolio. A seasoned investor emphasizes that while their personal allocation is heavily weighted towards real estate, they recommend maintaining a balanced approach. This entails considering the risks and returns associated with each individual asset class to tailor an investor's unique financial goals. The discussion underscores the significance of understanding personal risk tolerance and adjusting investment strategies accordingly.

Intro

3min

Navigating Real Estate and Investment Strategies

10min

Navigating Stock Market Overvaluation and Financial Strategies

4min

Market Speculation and Real Estate Insights

7min

Navigating Economic Uncertainty in Real Estate

6min

Navigating Real Estate in a Tight Market

10min

Shifting Investment Strategies Amid Economic Uncertainty

3min

Is now the time to stop investing and start saving cash instead? As an “asset bubble” balloons larger and larger, every investment is looking overpriced. Homes are at all-time high prices with massive mortgage payments, stock price-to-earnings ratios are reaching dangerous levels, and Bitcoin is hovering around six figures. We constantly talk about how consistently investing in real estate leads to long-term wealth, but is now the time to pause?

J Scott, the author of Recession-Proof Real Estate Investing and expert flipper, multifamily investor, and more, has significantly shifted how he’s using his money. While deals were plentiful before rates rose, they're now much harder to find—and not just in real estate. Who knows which tech and AI stocks will be worthless in a few years and which cryptos will crash?

So, what should you do with your money at this inflection point in the economy? Should you hoard cash and wait for opportunities, or follow the “dollar-cost averaging” advice and invest regularly? Will doing so cause you to miss out on opportunities if the economy begins to shift? We’re asking J his take in this episode!

In This Episode We Cover

J’s current investment portfolio and why he feels he has too much real estate

Exactly what J would do today if he were given $100,000 to invest

The 2025 “asset bubble” that has already formed (will it pop?)

The assets J is selling and why he stresses diversification in a different way

2025 buying opportunities and the major discount you could score on one profitable type of real estate

Why J thinks you should be putting MORE money down on your real estate deals now

And So Much More!

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