Tesla Inc. TSLA CEO, Elon Musk posted in a Twitter thread earlier this year advising his followers to own “physical things” when inflation is high. The post came shortly after inflation hit its first 40-year high in March.
IN I tweetMusk said, “As a general rule of thumb, for those seeking advice on this topic, it’s generally better to own physical things like a house or stock in companies that you think make good products than dollars when inflation is high. .”
“I still own and will not sell my Bitcoin, Ethereum or Doge fwiw.”
Musk’s message emphasizes that physical assets are generally the safest investment during times of high inflation. This message coming from the “Dogefather” himself should speak volumes.
The stock market began its steep decline shortly after Musk’s tweet on March 14. The S&P 500 is down 15.33% since April 1, and Tesla shares are down 38.52%.
Cryptocurrencies that Musk said he would not sell have fallen even further in price. Bitcoin BTC/USD is down 57.57% since April 1, Ethereum ETH/USD has decreased 59%, and Dogecoin DOGE/USD has decreased by 56.85%.
So how have physical assets performed during that time?
Real estate
Recent headlines regarding real estate values will lead many to believe that an investment in this asset class during the first half of 2022 would have been a mistake. According to data from Redfin, the average sale price in the U.S. has fallen roughly 4.4% since the start of April, but has mostly leveled off over the past two months.
What this data does not take into account is the cash flow generated by the investment properties. Investors in the investment platform of partial rental properties The houses arrived are earning an average annual return of 4.8% from rental income alone.
Another important point to remember is that not all US markets are experiencing the same decline in property values. One market that Arrived Homes has started buying properties in this year is Cincinnati, which has actually seen a 2% increase in the average sales price since the beginning of April.
Real estate has also become more accessible than ever. Arrived Homes, which is supported by Amazon.com Inc. AMZN founder Jeff Bezos, allows retail investors to buy shares of long-term and short-term rental properties for as little as $100.
The Arrived Homes platform currently has seven rental property investments available.
Other options like CalTier allow individuals to invest in an entire portfolio of multifamily properties with as little as $500.
Wine and spirits
Spirits have become an extremely popular investment option for retail investors, which is no surprise considering Liv-ex Fine Wine 1000 The index has increased by 10.3% since April 1 and 14.1% since last year.
of Rare Apex 1000 Whisky The index is doing well this year as well, with an increase of 4.9% since April and 10.4% since last year.
Investors in the investment platform of wine and spirits fractions twenty It recently did quite well on an investment in the platform’s Bowmore Cask Collection, which delivered a net annual return of 35.49%. Investors were able to purchase shares of the collection for as little as $47 each.
The Vint platform currently has two Bordeaux collections available for investment.
Collectable
Buying and selling shares of assets such as sports memorabilia, fine art and even classic cars has become as easy as trading stocks. Popular investment platform public collections recently added to the pool of investment options. Investors can now trade stocks, crypto, non-fungible tokens (NFTs) and collectibles on the same platform.
Trading cards have remained relatively stable this year. The PWCC 2500 index, which tracks the performance of professionally graded trading card investments, is up about 1% since April and roughly 8.3% year-to-date.
Photo from Daniel Oberhaus on Flickr
