Wondering what is it like living in this New Economy?
Well, believe it or not, we have all lived through 21 months of a Covid Economy. Everything you do financially and personally has changed dramatically during this time. From your time to exercise, to your family time on vacation, even your working ability. All of it.
I have spoken with friends about the New Economy, and I want to share some insights:
- Credit is the New King- the old saying “Cash is King” is dead. Your local McDonald’s doesn’t want either your retailer. Everything is moving to E-Pay, and guess who is best equipped? Your credit card companies! The evolution of wealth will translate to Credit Wealth.
- “You Got Credit?” is the new money tagline in 2022. If you don’t, you are broke. So start loving Equifax, Trans Union, and your bankers. There is no time in history credit has become so important.
- The Rich Leverage – days of investing just cash are dead. To compete for ROI, you need to invest with leverage. Stock markets use Margin, Real Estate uses Mortgages, and if you don’t use these, you will get crushed. Leverage is allowing the financial winners to bid higher and buy more. The evidence? Simple, if you wonder why you can’t compete or enter the market.
- The Mortgage Lender is the new money multiplier- this isn’t new, just more factual in today’s real estate investment market. The lesson? The new currency is the Bank Mortgage Pre-approval. If you haven’t noticed this in the last 19 months, you are probably part of the 80 percent who lost during Covid.
- The Race for Yield is on – in case you don’t know it, yield or cash return on capital is the hidden gold. Everyone is chasing this. From Corporate Elite to Retiring Baby Boomers, it’s nowhere in “plain sight.” Are you training your eyes to spot it? Better get started!
If you think it’s time to change your game. Let me know.