Buy Land … Not Land Mines!

The pandemic kept a lid on consumer and business spending in 2020. It created huge pent-up demand for services, travel, even just a night out at the restaurant.

As a result, the American economy became “spring-loaded” and is now likely to lurch into faster gear as most adults are vaccinated and life returns to normal.

When lots of people start spending at once, it has an inflationary effect …

Saved-up money chases fewer and fewer goods.

Not to mention the torrent of money the U.S. government is pouring in at the same time.

No, this is not yet the “hyperinflation” that could be coming after the “K-Wave” I’ve talked about crashes ashore.

The inflation on its way now is just a preview of coming “attractions.”

As such, it’s a good opportunity for you to accumulate wealth now that will help protect you later.

There’re a few kinds of assets that do well in times of inflation:

Financials, commodities … and real estate.

“You should always buy land,” said Mark Twain. “They’re not making any more of it.”

It was true when Twain was alive, and it’s still true today.

But when you buy land, watch out for land mines!

The coronavirus pandemic has left commercial real estate in dire straits.

And you don’t want to own anything right now that depends on unemployed people to pay their rent on time …

Or businesses to renew their office leases after they’ve found out how efficient it can be for most employees to work from home. Here’s a chart from Federal Reserve Economic Data showing the slide in commercial real estate prices this year:


 

The good news is commercial real estate seems to have bottomed as people stop working from home and return to the office.

But with scientists warning that we could see another pandemic wave later this year — fueled by the Delta variant of the COVID-19 virus — we might see it dip again.

The better news is there are certain kinds of real estate that are bound to do very well in the next few years.

Like farmland.

Computer warehousing.

And the land needed for cellular antennas.

One way to gain exposure is with the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (NYSEARCA: SRVR).


 

This exchange-traded fund (ETF) consists of real estate firms in the data and infrastructure sectors.

Since its inception in May 2018, it’s had an average annual return of 17.67%. The fund has an expense ratio of 0.6%, making it a bit more expensive than some. But these properties have the potential to be massively lucrative.

You can do even better by investing in individual stocks. Three companies in particular have a virtual monopoly on cellphone antennas, and all three appear poised to skyrocket as 5G takes hold around the country.

I give you the names and ticker symbols in my free report: BOOM, BUBBLE, BUST!

But it’s available to Wealth Megatrends subscribers only.

Hop on board if you haven’t yet!

All the best,

Sean

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