Miscellaneous
When most people hear of “The Theory of Relativity” they think of Einstein and E=MC^2. As it turns out, there is another theory of relativity that investors need to know about. This relativistic view of the investment world can be summarized by the phrase: “Compared to what?” When viewing income producing real estate as an investment vehicle, we must always ask what we are comparing it against. This is especially important in a zero percent interest rate environment where risk free assets provide almost no yield. All of this is juxtaposed against the fact that the zero percent rate of return on “risk free” assets like Treasury Bonds may carry no risk of default, but they carry a significant risk of having their real value eroded by inflation. In short, income property is one of many imperfect investment vehicles … it just happens to be one of the least imperfect investment opportunities that we have available. Website: www.JasonHartman.com