Play episode
Hosted by


Have you considered how your investing could impact your legacy and future generations? It is one distinction in how the ultra-wealthy invest their portfolio. And if you haven’t checked out the previous podcast called building your legacy, we go deeper on some of this, but more on this later. 

First, there was a New York times headline that red clouds are forming over the bond market. Comments by federal reserve chair Janet Yellen indicated that the fed will be scaling down its large four and a half billion-dollar balance sheet, meaning that they view the state of the us economy as pretty much recovered from the market meltdown of 2008. Now keep in mind, this is all prior to Corona virus. 

Europe central bank had Mario Draghi, a well-known Italian economist has indicated he would be winding down the bank’s balance sheet, along with the bank of England’s governor Mark Carney, who has made similar comments and put together. This means the days when the banks lowered short term interest rates to nearly zero to stimulate the economy are a thing of the past. In fact, the fed has been raising short term rates since December of 2016, and they have made statements that they will continue to do so. 

Janet Yellen, chairwoman of the federal reserve bank confirmed to the white house committee that interest rates would continue to rise. As interest rates rise, easy money becomes more scarce and returns on short term bonds increase and the appetites for equities is reduced. This has led some financial analysis to predict a fall in stock prices. This should come as no surprise given the incredible run-up and equities over the past several years. Since the beginning of 2017, the S&P 500 has realized a return of over 9%. There are warning signs coming from the bond market too. While the fed is raising rates in the short-term bond market, long-term rates, those set by the bond market trading are declining. This disconnect has in the past, proceeded a crash in the stock market, followed by a recession. 

Accordingly, there is increased concern about where the fixed income market is headed, because it is very unusual, and some say scary for short term rates to move towards parody with long-term interest rates. When that hasn’t happened previously. And when short term rates become higher than long-term rates, you’ve got trouble on the horizon. 

This is called yield curve inversion. And it happened right before the economy tank back in 2007, just like when we saw the yield curve inversion happening earlier this year, it’s time to run for the Hills and liquidate those traditional assets that get killed in a downturn. And don’t wait too long. This stuff sneaks up on you 

and before you know, it it’s too late. 

A safer place to invest away from the future bond market mess are intangible assets that can generate long-term income. These asset classes generally do well when wall street equity and bond markets do poorly. There are great hedge against the stark ups and downs of wall street. Historically alternative asset classes included real estate, commodities, rare coins, stamps, and artwork. More recently, the term includes private equity, venture capital and hedge fund investing. Besides acting as a great counterbalance to stocks and bonds, many of these tangible alternative assets are critical to diversify in because they are generally less liquid than regular assets, sometimes undervalued and providing the investor with wonderful long-term return on investment. 

Only a few of the investments in the alternative asset class can generate income and appreciate in value. I get asked all of the time, how do I create generational wealth and where do I start? So I wrote a great guide to creating multiple streams of income. You can download it for free at stoptradinghours.com. Remember the real estate asset class is a tangible investment which provides income over the long-term, regardless of what happens on wall street. 

Affluent investors have effectively used the real estate asset to hedge against inflation and volatility while passively earning income for generations. You have been lied to from the education system to the financial gurus, they have lied to you about building wealth and financial freedom. In the new economy what worked for your grandparents or your parents will not work today. So start building your legacy. Your future self will thank you. 

Join the discussion

  • I wanted to put you the tiny remark to be able to say thanks a lot over again on the precious strategies you have provided in this case. It was really strangely open-handed with you to make publicly precisely what many people would’ve offered for an ebook to get some money for themselves, notably now that you might have tried it in case you desired. These solutions in addition served to be the good way to know that other people online have the identical interest really like my personal own to learn more and more related to this matter. I am sure there are numerous more pleasant periods in the future for many who read carefully your site.

  • I intended to compose you a bit of note in order to give many thanks again considering the beautiful concepts you’ve contributed in this article. It is quite remarkably generous of people like you to give openly just what a number of us might have marketed as an e book to generate some dough for themselves, most notably given that you could possibly have done it if you ever decided. These points as well served to be a fantastic way to fully grasp other people have similar fervor much like my own to know the truth lots more pertaining to this issue. I am certain there are millions of more fun opportunities in the future for individuals who looked at your blog post.

  • Thanks for your own labor on this web site. My mother take interest in participating in research and it is simple to grasp why. My spouse and i notice all regarding the powerful way you produce valuable tips via your website and in addition recommend response from the others on this subject then our own princess is undoubtedly studying a whole lot. Take pleasure in the rest of the year. You have been performing a terrific job.

  • I intended to create you one little note just to give thanks as before for the fantastic information you’ve discussed at this time. It has been certainly particularly generous of people like you to allow extensively all that a lot of people might have offered for an ebook to get some dough for themselves, notably now that you might have tried it in case you desired. These smart ideas as well served to be the good way to fully grasp that other people online have the identical interest really like my personal own to learn more and more related to this matter. I am sure there are numerous more pleasant periods in the future for many who read carefully your site.

  • I am also commenting to let you know of the great encounter my friend’s daughter found reading through your web page. She figured out numerous issues, not to mention what it’s like to have an amazing giving mood to have men and women really easily have an understanding of selected hard to do subject areas. You really exceeded our own expectations. Many thanks for imparting the interesting, safe, explanatory and even easy thoughts on the topic to Janet.

  • I simply wanted to thank you so much once more. I do not know what I would’ve sorted out without these strategies revealed by you over that subject. It was an absolute horrifying matter in my position, nevertheless spending time with this specialized approach you dealt with it forced me to cry for contentment. Extremely grateful for the advice and believe you are aware of a powerful job that you’re accomplishing educating many others all through a blog. I’m certain you’ve never come across all of us.

  • My husband and i ended up being comfortable Albert could carry out his analysis because of the ideas he acquired from your blog. It’s not at all simplistic just to always be freely giving facts a number of people could have been making money from. And now we already know we’ve got the blog owner to appreciate because of that. All of the explanations you’ve made, the easy blog menu, the friendships you aid to create – it’s all astonishing, and it’s aiding our son and our family believe that that article is amusing, and that’s exceedingly essential. Many thanks for all!

  • Thanks for your whole work on this website. My mum takes pleasure in setting aside time for research and it is simple to grasp why. We notice all relating to the powerful ways you provide very useful tips and tricks via your website and therefore strongly encourage response from visitors on this theme while our own simple princess is without a doubt understanding so much. Take pleasure in the rest of the year. Your performing a useful job.

  • I precisely needed to appreciate you once again. I am not sure the things that I might have handled in the absence of the entire pointers provided by you on such a problem. It has been a very frightening difficulty in my circumstances, however , looking at the skilled manner you processed that made me to jump over fulfillment. I am happier for this help and in addition hope that you know what a great job you are always getting into instructing others through the use of your site. I know that you have never encountered all of us.

  • I simply wanted to thank you very much once more. I do not know what I would have tried without these tactics shared by you regarding that subject matter. It was actually an absolute intimidating problem in my position, nevertheless taking a look at this specialized tactic you solved the issue took me to weep with happiness. Now i’m thankful for your support and thus sincerely hope you really know what an amazing job you have been putting in training the mediocre ones via your webblog. Most probably you haven’t met any of us.

  • Thanks for the tips about credit repair on this blog. Things i would advice people would be to give up the mentality that they’ll buy right now and pay later. As a society all of us tend to do this for many things. This includes holidays, furniture, as well as items we want. However, you have to separate your own wants from all the needs. When you are working to improve your credit rating score you have to make some sacrifices. For example you are able to shop online to save money or you can turn to second hand shops instead of costly department stores with regard to clothing.

More from this show

Let’s get social

Follow Andrew to learn more about his investments and to share the podcasts with friends!

Episode 12