In the last year, to fight the COVID-19 pandemic, the government injected over 2.5 trillion dollars into the US economy. These are not dollars generated by third-party investors buying US treasuries. These are dollars just printed and injected into the economy that may eventually overheat the economy, resulting in inflation.
I believe inflation is on the horizon and that it’s only a matter of time before it materially affects our economy with rising interest rates. There is not an immediate correlation between the rise in US Treasuries rates and private money rates. Long-term interest rates will have to increase and remain consistently higher before it materially affects private money yields.
Real estate is an excellent investment and a great hedge against inflation. However, the average person may not have the expertise, resources, or want the responsibility that comes with owning and managing real property.
An alternative to owning and managing investment real estate to hedge against inflation is an investment in a mortgage fund like Fidelis Private Fund for the following reasons:
- A Fidelis investment is secured by Trust Deeds on real property.
- A Fidelis investment is in fixed dollars secured against real estate assets inflating in value, creating instant equity and additional security.
- A Fidelis investment is secured by numerous short-term loans, so as interest rates rise, the Fund will adjust with the market eliminating interest rate risk.
- A Fidelis investment can take advantage of compounding monthly income, which helps offset the loss of purchasing power when inflation occurs.
A mortgage fund like Fidelis is an indirect way for an investor to passively invest in real estate and still hedge against inflation while enjoying many of the other benefits associated with owning real estate without all the headaches and costs of real estate ownership.
If you are an accredited investor seeking steady monthly income or want an investment where you can allow your investment to compound monthly, Fidelis Private Fund may be of interest to you.
For further information, please call me at 702-379-3468, and I can share how you can start putting your investment to work in a mortgage fund or visit our website at Fidelispf.com.