INFLATION is coming BIG TIME! Here are your options for beating it

Inflation is coming for you big time. Let's talk through some of your options for trying to beat inflation. First of all, inflation is coming. There's only like two people in all of Washington DC that even care about deficits, debt, or spending anymore. Everyone else in Washington DC is basically trying to figure out how fast they can spend your money faster than the other guy. They may disagree on what the money is going to get spent on, but none of them seem to care that it's going to get spent at all. Which means again all they're doing is bickering about how fast they can make you poor, not whether they're going to make you poor. Even this week it was announced that there's going to be an extra $200 mill billion so a fifth of a trillion dollars on mortgage back securities. And when the Federal Reserve or the Treasury buys $200 billion of mortgage back securities, they are effectively pushing newly printed made out of thin air money into the economy which makes prices rise. Uh it was also announced this week an extra 500 billion which is half a trillion spending on the military. Again that will be paid for with madeup money straight out of thin air pumped into the economy from nothing which is what causes inflation. Uh as Milton Freriedman always says uh inflation is always and everywhere a monetary phenomenon. Meaning if prices are rising, you know, someone somewhere is making more money. Because in a modern economy, prices would naturally fall as humans get better at doing and making everything. There's no reason prices would naturally rise. They would naturally fall unless humans are actually getting worse at something. Well, humans don't get worse at making pencils or shoes or automobiles. We get better at those things, which means the prices should be falling as we get better at making those things. And when they rise, it is always and everywhere a monetary phenomenon. Okay, so prices are going to eat your lunch over the coming years. And the question is, what are you going to do about it? So you only have a few options. One of them is real estate, but I would argue real estate is quite overpriced as it is right now. So if somebody said, I'm going to buy real estate as a hedge against inflation, I would say that's a now's an awfully expensive time to be buying real estate as a hedge against inflation. Now, sure, if you're buying it in the middle of a major housing recession, I would say, "Yeah, that makes a lot more sense." But right now, real estate is expensive, and buying expensive real estate with the hope that it will increase in price even more to make up for the inflation that your family is going to get hit by, again, not something I would do. The same problem uh for stocks. Stocks are historically very expensive right now. So the the value of stocks as relates to how expensive or cheap they are is measured by something called the price earnings ratio. It's called the PE ratio. And I'm going to give you the world's simplest explanation of that, which is the price is what you have to pay for the stock. And the earnings are how much money the company is making. So let's assume there's a company that has agreed to give their shareholders $1. And the shares to get that $1 cost $2. that would have a price earnings ratio of two, meaning you have to pay $2 for every $1 of profit you're going to get from that company. Now, the truth is price earnings ratios are much much much much much higher than that. I don't know the current uh ratio for the S&P 500 or the NASDAQ or the Dow Jones Industrial Average, but it's typically in the, you know, multiple dozens. You know, price earnings ratio of 20, 25, 30, 40, 50. Even for some of the Magnificent Seven stocks, you've got price earnings ratios that are just ridiculously high. So again, if you're like, "Yeah, but I'm going to use my stock portfolio to protect my family from inflation," I would say, you're picking an awfully expensive time to make that choice. Just like with real estate, it's like, yeah, but the every dollar you have to pay to get a dollar of profit from the stock market, those are just historically very high prices right now, which typically mean at some point, we'll go through a price correction and everything will come back down to something that looks a little bit more reasonable through a historical lens. And again, it might not happen that way, but historically, it always has happened that way. And so again, if you're using the stock market as a hedge against inflation, I would say that's not what I would do. Not right now. Uh bonds, I would not use bonds as a hedge against inflation. First of all, bonds tend to not pay uh coupon, which is the, you know, the the interest and dividends, whatever you want to call it, that you get from a bond. They tend to not be that high right now. And uh interest rates and yields and all of that could end up much higher. So you end up buying bonds and the the value of those bonds drops considerably when the government becomes willing to pay higher and higher interest rates to issue uh new government debt. So I would not be buying bonds right now. So what about precious metals? I would say well if you had come to me a year or two ago and said I'm buying gold, I would have said well at least your thesis is sound because the two strongest monetary assets in the world are gold and Bitcoin. Now, I think uh Bitcoin is superior in virtually every way. And so, so I would have said, well, the main the main problem with gold is not that it has bad monetary properties. The problem with gold is that Bitcoin has better monetary properties. And I believe in the long term, Bitcoin will out compete gold. And I would not buy an asset that I thought was going to get out competed. Now, gold has performed exceptionally well over the last number of years. So again, if you had told me you had a thesis on gold a few years ago, I would have said, "Yeah, really the only the only danger to your thesis is that Bitcoin eats gold's lunch before gold takes off." Now, with the reflection of, you know, hindsight of knowledge of history, we see that gold did take off before Bitcoin has eaten its lunch. So gold went from, I don't know, you know, $1,800 an ounce in 2019 to now $4,500 an ounce. So, if you owned a lot of gold as a hedge against inflation and you bought it for, let's call it less than 2,000 an ounce and now you have the ability to spend it uh you know or convert it to US dollars or something like that to buy things your family needs, I would say, yeah, that has worked out well for you as a hedge against inflation. But again, just like with stocks, just like with bonds, just like with uh I guess bonds have performed really poorly lately, but just like with stocks and real estate, I would say yeah, that strategy works well if you're not buying those things when they are especially expensive to start with. And right now, it strikes me as an especially expensive time to buy real estate or stocks. Uh and it's also an expensive time now to buy precious metals. So, gold has gone through an epic rally. Silver has now, as of the last month or two, gone through an epic rally. So if you came to me now and said, I'm going to use precious metals as a hedge against inflation, I would say, yeah, but a huge amount of the gains of those assets have already happened. Basically, the smart people who figured out that they were going to use those assets as a hedge against inflation bought it at much lower prices. So again, if you're thinking gold and silver are a good hedge against inflation, my question to you would be, "Yeah, but I hope you bought it a long time ago, not right now." But the vast majority of people who are thinking about buying gold and silver are buying it because they don't own any and the price went way up. And again, that's just not good investing. It's not good investing to wait for some assets price to go way up and then suddenly get interested in it because interested in it because the price went way up and then try to buy it at a really expensive price which is what almost everybody seems to try to do and then ultimately subsequently loses money. So I don't want to invest in bonds. I don't think bonds are a good investment right now and I think stocks and real estate uh and precious metals are especially especially expensive right now which leaves exactly one asset that I believe is significantly undervalued right now that is very early in its adoption cycle that is on sale and that has perfect monetary properties which is Bitcoin which is why I have 100% of my liquid assets frankly I own two things I own prosperous stock uh in Prosper, the development on the island of Roaton in Honduras. I own stock in that that I bought uh back between 2017 and 2020. Um and I own Bitcoin. That's the two things I own. And because my prosperous stock cannot be used to buy groceries and my Bitcoin can, I have 100% of my liquid assets in Bitcoin and almost 100% of my non-lquid assets, uh meaning private company stock in Prosper. So why do I have 100%. Well, because I look at all these asset classes and I say, okay, as I get new money of any form, which does happen from time to time, I get a tax refund, I get, you know, salary from Prosper or whatever it is, that goes immediately into Bitcoin. I could put it in anything. The reason it goes to Bitcoin is because I look at real estate and I look at bonds and I look at stocks and I look at precious metals and I say, I don't think any of these are going to perform well to shield my family from inflation and to grow my wealth. And I look and I say the same asset that I concluded back in 2021. I bought my first Bitcoin in 2017, but it took until 2021 to uh conclude that Bitcoin was by far the best asset. And that's when I really started exclusively piling capital into Bitcoin is 2021 and after. Um, so that is the asset that has perfect monetary properties. It's very early worldwide in the adoption cycle with less than 5% of the world owning any Bitcoin currently. And those that do own Bitcoin tend to own a very small amount of it. So I look at it and I say everything is going right for Bitcoin and it's on sale. So, if there was another asset that everything was going right for that was also on sale, I would say, "Okay, well, at least there's a viable alternative." But I don't see a viable alternative. Even Tesla stock, which was on sale for a little while, uh is now much more expensive than it was uh at various points, you know, two years ago, one year ago, etc. Um so, my advice is the same. Buy as much Bitcoin as you can, hold on to it for as long as conceivably possible. It's the only consistent strategy that's worked for me. And it's the strategy that's worked for 100% of people who have done it over the last 17 years of Bitcoin. And again, if you're using any other asset to shield your family from inflation, I question whether that asset is going to work out as well as you think it's going to work. And again, you have a incredible opportunity to buy Bitcoin on sale very early in the adoption cycle with perfect monetary properties and everything going in its favor before everyone else figures that out. With a lot of these other assets like gold, like silver, whatever else, if you come to me and say, "Hey, I think I'm on to something with gold and silver." I would be like, "Well, of course you are. Have you read the newspaper? Have you read the headlines online? Everybody's talking about gold and silver. So, if you think you figured out something special with gold and silver, guess what? Everyone else on the planet thinks they figured out something special with gold and silver right now. I dumped all of the gold and silver I bought back in 2017. I dumped that a few months ago when Bitcoin was $95,000 a coin and bought Bitcoin. So, obviously, Bitcoin's a little bit below that right now and gold and silver have gone higher than the price I sold them at. But, I do not regret making that decision. I'm not trying to time the top of precious metals or the bottom of Bitcoin. I'm trying to be in the best performing asset. I believe Bitcoin with deep conviction is the best performing asset and will be the best performing asset. And we've just been through 2025, which was a year of mostly sideways chop. And the best time to buy something is when it's boring or it's on sale. And Bitcoin is boring and on sale right now, even though everything is going in Bitcoin's favor. So, buy as much Bitcoin as you can. Hold on to it for as long as conceivably possible. Same advice as