Jason Hartman talks with investment counselor, Sara, about investor psychology, overcoming obstacles and getting out of our own way. The smoke-and-mirrors propaganda perpetuated by mainstream media (lamestream media as Sarah Palin says) in reporting the new high in the Dow Jones Industrial Average (DJIA).
They almost always fail to distinguish between nominal dollars and real dollars. Jason illustrates how investors have actually lost money in inflation adjusted dollars and how the Dow has to increase a lot more before investors break even based on the two peaks. This lie is even worse when one considers how inflation is underreported in the consumer price index (CPI and CPI-U) due to weighting, substitution and hedonics (the hedonic index). Another misrepresentation is the ‘core rate’ or ‘core inflation’ which strips out food and energy because they’re too volatile. Jason shares some interesting data from ZeroHedge.com.
You’ll hear a mortgage financing panel from Jason’s ‘Meet the Masters of Income Property Investing’ event last January in Irvine, California. Many topics are discussed, including:
- How investors can obtain more than 10 Fannie Mae (FNMA) loans
- How banks underwrite non-owner occupied loans
- Implications of strategic default
- Property financing with entities like LLCs, corporations and trusts
- Private lending/hard money lending options
- And much more
Episode: CW 304: Nominal Dollars vs Real Dollars and Understanding Investor Psychology with Investment Counselor Sara
Guest: Jason Hartman & Sara
iTunes: Stream Episode