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What is QE3 and What You Should Do - Cardone Zone

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Streamed live on Sep 21, 2012

Cardone Zone iTunes Podcast Download: http://bit.ly/1avfW4m

Cardone Zone SoundCloud Podcast Download: http://bit.ly/13IGRrk

(888) 454 3378 Call in Number

Welcome to the Cardone Zone, where every week I fight for you, the most important part of this great country, the middle class. 

In a moment I will be taking your calls and answering your questions and giving you any advice you need to increase the quality of life for you and your family. Whether its money and finances or your career I am here to help you... 

For the last week all you can hear on the news is QE#3

I think most people do not understand what this means and what it means to you and your future - I am going to give you the simplicity of it and what to do about it.

Last Thursday, the Federal Reserve announced that it would start buying $40 billion in government-backed mortgage debt each month until the job market improves significantly.

Ben Bernanke has been faced with an onslaught of doomsday predictions about rampant inflation and the destruction of the U.S. dollar.

The Fed now sees unemployment falling as low as 7.6% in 2013 and 6.7% in 2014.

Gross domestic product is expected by the Fed to rise as much as 3% in 2013 and 3.8% in 2014.

PIMCO'S Bill Gross, who runs the world's largest bond fund, said on Thursday that he does not see the Federal Reserve pulling back from its quantitative easing policies until the U.S. unemployment rate at least drops to 6 percent. Gross said: "I'm basically saying they are not going to exit." He added, Fed Chairman Ben "Bernanke has basically said if QE3 doesn't work, there's more behind this."

Bill Gross who runs a 1/4 Trillion dollar fund - said, regardless of what investors think of the Fed's moves, the United States is entering a reflationary cycle rather than a deflationary one, meaning that investors should tilt their portfolios that way.

Plan for the Inflation that is Coming - Inflation is an Invisible Tax - Tax on People that had faith in their Currency.

Refinance Your Home Now
Invest in Debt Paid by others  
Stock Market - emerging markets Australia, Brazil, Russia, China actually during very rampant period of inflation like during the 70s the stock market only went up 17% while the CPI went up 107%

Warren Buffett says the BEST investment hedge against inflation is increase your talents - they can't tax it and they can't take it from you have a good business or an interest in a good business email my office info@grantcardone.com http://www.youtube.com/watch?v=RTVoUh...

What I want you to do ---- This is actually the simplest, most practical and safest thing you can do... And which you are in most Control

1) GET great at that thing that makes your valuable
2) Start your own business- -- examples
3) Learn everything you can about Selling - 

Then 
Buy Apartments

(888) 454 3378 Call in Number

Welcome to the Cardone Zone, where every week I fight for you, the
most important part of this great country, the middle class. 

In a moment I will be taking your calls and answering your questions and giving
you any advice you need to increase the quality of life for you and
your family. Whether its money and finances or your career I am here
to help you... 

David Weidner with the WSJ said, and I am quoting him 

"last month buying real estate is a good investment for many reasons, some of which have only become apparent in recent weeks. Other good signs: Housing starts rose 6.9% in June. Home-building stocks are on the rise, with the Philadelphia Housing Sector Index up 27% so far this year. And for those who can invest in property, rents continue their ascent. Prices are at a 10-year high, with the median unit renting for $710 a month. Real-estate website Trulia found that it is cheaper to buy than rent in each of the nation's 100 biggest metropolitan areas."

Rates are Low
Prices are coming off the bottom...
10% correction in the median price of a home across US?

But this is what they are NOT telling you:
1) Most of the bump in housing is from investors eating up stock...
2) Buying a house traps your money and your choices
3) Even at 4% interest a year your house would have to appreciate 40% to pay off just the cost of money over 10 years
4) You never own a home due to property taxes
5) Cost of upkeep, repairs, paint, roofs, furniture

History - The run-up in home prices was so great that for the 10-year period 1997-2006, the nominal and real  returns were 9.7 percent and 7.1 percent, respectively.

For the period 1890-2005, inflation-adjusted home prices rose just 103 percent, or less than 1 percent a year.

A home should be viewed as a consumption item, rather than an investment. 
It's an indivisible investment
It's undiversified
Transaction cost are very high
First 5 years 80% of the mortgage goes to interest
Warren Buffet has lived in the same home since 1958 for 31k

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