Good morning. This is Jason Hartman with The Speed of Money. Hurricanes are in the news this week. Gustav is now a tropical storm and Hanna is on her way. We all hope the human toll from these storms is zero, but we know that there will be a toll on buildings, utilities and infrastructure. Whether it’s hurricanes, earthquakes, fires or floods, these natural disasters consume building materials and commodities. As we see a historic growing middle class outside the U.S.A. with over 2.5 billion new commodity consumers in China, India, and many other countries around the world, who weren’t even playing just a couple decades ago, we know that the very simple law of supply and demand tells us that we should not focus on the little micro ups and downs, but rather the macro trend of increasing commodity prices.
At first blush, we might think that investing in commodities would be a good deal, but I don’t think so. Instead, we should use an innovative, new method I created called Packaged Commodities Investing.
You know, last week, we talked about how debt can be a powerful inflation fighting asset and which investments work well in acquiring the best debt assets. My Packaged Commodities Investing methodology works very well. Let me explain.
The supposed experts in the media talk about the housing market and do a disservice by massively oversimplifying the issue. The part of this oversimplification that I would like to focus on today is that a “house” has two primary value drivers. One is the value of the land and the other is the value of the improvement or the structure or the house sitting on that land. I believe that land values are declining in most markets, while improvement values are increasing, along with the cost of energy and building materials.
Next week, we’ll dig deeper into one of my strategies so you can reduce risk, protect yourself from inflation and dramatically increase profits the right way in packaged commodities. Until next week, visit www.jasonhartman.com, that’s www.jasonhartman.com, for details. This is Jason Hartman with The Speed of Money on 790 KABC.
For even more in-depth information, tune in to Jason Hartman’s Creating Wealth podcast. Jason shares his unique investment strategy and shows you how to create and maintain wealth in these uncertain times. Head to www.jasonhartman.com and click on Podcasts. Or simply search for Jason Hartman at the iTunes Music Store. Subscribe today to the Creating Wealth podcast at www.jasonhartman.com.
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Duration: 3 minutes