The dictionary defines inflation as:
"Expansion in the money supply beyond the increase in available goods and services. Often misunderstood to mean a rise in prices, which generally accompanies such an expansion."
In recent months we have seen just such an expansion of the money supply, and there are those like Warren Buffett and Milton Friedman who agree an accompanying rise in prices is on the way. Few disagree.
With this in mind, establishing what your business needs and acquiring it at today’s prices makes a lot of sense.
Real estate is one of the most important tools of business and in today's market it's “on sale”. This sale-priced market, on the cusp of an inflationary cycle, means opportunity for those who recognize the signs. Some of the richest men in history made their fortunes in times just like this. The greatest factor in achieving their goals was, and is, overcoming fear. Fear will cripple even the best of plans, if not managed effectively.
One of the biggest fears I hear is “what if?”
What if it rains? What if it doesn’t rain? What if the sky falls? The next time you find yourself saying "what if…", step back and look at the big picture. We are the strongest economy in the world. We have hit a pothole in the road, but the needs and demands of three hundred and fifty million people are not held at bay for long. Neither are the those of the rest of the world in which we play a big role in supplying.
Getting ready to fill those needs is the order of the day for anyone who doesn't want to be left behind. Those who take a strategic look at the future, who are proactive and positive in today’s negative environment, will be money ahead when prices start to rise. And most importantly, they will be in a position to profit from the return to growth.
Am I suggesting everyone run out and buy something, anything? Of course not. I am saying be smart, don't hide your head in the sand, or cry the sky is falling. Don't make decisions from a position of fear. Ask yourself where you need to be to profit in the future. If that means buy, then by all means do it now. The opportunity of a lifetime is only good for the lifetime of the opportunity.
