Don't Rush
Auto Bubble, Selling my House, and Guide to Financial Independence
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“Sometimes the hardest thing to do is to do nothing.” - David Tepper.
First things first - I am so proud of our community. I have talked about the importance of having emergency savings account innumerable times in my videos and it seems to have done its magic. In a recent poll that I did on my Twitter, ~80% of responders said they had an emergency saving and 35%+ had more than 6 months saved for unexpected emergencies. This is stunning when compared to the overall country as reports suggest that 60% of Americans don’t have even $500 in savings.
Moving on, last week, the markets gave a good respite with S&P 500 rising 1.7%. Whether it’s a dead cat bounce or a genuine rally is anyone’s guess. My concern is that there are still a lot of fundamental issues such as high inflation, rising interest rates, increasing delinquencies, etc. that we haven’t addressed. So, buying into this rally thinking it will be sustainable might not be the best idea.
Guide to Financial Wellbeing
Absolutely to the surprise of no one, I am pretty frugal. For my entire life, I have avoided spending money and my default has been to excessively save. Even now, when I earn enough to do reasonably almost anything, I don’t spend money on anything that doesn’t hold its value or pay for itself. Oddly enough, the more wealthy people I have spent my time with, the more I have begun to realize that almost all of them do this!
To Sell or Not to Sell?
As most of you know, since I started this channel, I have directed the majority of my efforts and money into buying real estate. Up until recently, Real Estate made up the vast majority of my portfolio and I had invested in them with the assumption that I would keep them for the rest of my life.
But now, after a lot of consideration, I have made the difficult choice to sell some of that portfolio.
The Auto Bubble
Just when you think 2022 couldn’t possibly get any worse, it was found that car repossessions have exploded. Since 2020, the price of automobiles has been skyrocketing from a combination of excess demand, a shortage of parts, and loose lending requirements. But now, as I captured in this viral tweet, it looks like it’s coming to an end.
So, if you are planning to buy a car, now might not be the right time.
By the way, this week, I have a recommendation for you…
Checkout The Bullpen.
The #1 reason you should watch this video is because the US dollar is at a 22-year high!
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So that’s it for my Sunday round-up. For the new folks here, in this newsletter, I give a quick recap of whatever you may have missed over the week on Sunday, and on Wednesday, I will be doing my deep-dive article on one of these topics.
See you next week with another bunch of exciting videos!
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