Stock Market Rebounds -- And STILL, People are Flocking To THIS... | Episode 200 - a podcast by Bryan Ellis - SelfDirected.org

What a ride! Since the last day of last year, the stock market fell more than 10%... and subsequently got back all of that loss as of the market’s close on Friday. As a result, something interesting is happening in the self-directed retirement account world that is completely COUNTER-INTUITIVE… and you need to know about it. I’m Bryan Ellis. This is episode # 200.

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Hello, SDI Nation! Welcome to the podcast of record for savvy, self-directed investors like you where we have one, and only one goal: To help you make GREAT investments that are simple, safe and strong.

And Today, I add a new, very brief segment to this show that I’ll call “Wisdom of the Ancients”. It’s a short quote, proverb or thought that may be directly related to wealth building, or may only be peripherally related. Regardless, it’s something that’s on my mind, and I’d like to share it with you for your own consideration, because it will contribute to helping you make great investments that are simple, safe and strong.

Today’s Wisdom of the Ancients quote is an ancient proverb that says simply: “The plans of the diligent lead to profit, as surely as haste leads to poverty.” This tells me 3 things: We must have a plan, we must be DILIGENT about that plan, and we must never be hasty. If you have any additional thoughts on this, I’d love to hear from you on today’s episode page at SDIRadio.com/200 – that’s SDIRadio.com/ two zero zero.

Folks, I had a very interesting conversation with a business development manager at a self-directed IRA company recently. It’s curious, the market he serves is very similar to – a subset, in fact – of the market that we serve here at Self Directed Investor Radio, and that’s you.

And his observation was fascinating to me.

He said, “Bryan, when the stock market started to get really bad late last year and early this year, we started to see a lot of people heading for the exits and jumping into the self-directed IRA world.”

Well, of course, this makes sense to me. The stock market is demonstrating the volatility for which it’s famous, and volatility is a bad thing. So it stands to reason that investors would be more inclined to diversify away from stocks.

But it was the rest of the conversation that I thought was interesting.

He went on to say, “But since the market has started to rebound, we’ve had an absolute FLOOD of new people opening self-directed IRA’s… people with some very large stock portfolios who are just getting out right now, as quickly as they can.”

That, my friends, is curious to me. Why would a person exit an investment that’s performing well… at least, recently?

My colleague had an explanation for that, too. He said “people tell me that now that they’ve recovered their losses, they just don’t want to stick around to see what is going to happen. They don’t have confidence in this economy and just want to get their money into something that they think is more controllable, more predictable.”

And you know, I think he’s totally right.

We’ve received substantial interest in our SDI Cash Flow Quick Start offer recently, which includes 3 high-quality, high-yielding rental properties along with a built-in strong asset protection plan and customized tax consultation… all for only $150,000.

I initially thought the reason for it was that the offer itself is so great, and while it is an extraordinary offer, the popularity is, I think, based on an external factor:

People are getting out of stocks “while the gettin’ is good”, as they say.

Over on Wall Street, they use the term “flight to quality” a lot. That means, in Wall Street parlance, the movement of capital from one asset to another of higher quality. And by higher quality, the talking heads on financial news stations generally mean things like blue-chip stocks or treasury bonds…

But never do THEY mean investments of greater substance like, for example, real estate.

Well, we all know why that is… real estate is a real asset… there’s an inherently limited quantity of it… and thus it’s virtually impossible to create illusory real estate… real estate that exist only on paper, in other words… and that type of illusory asset creation is at the heart of what’s done on Wall Street. They attempted to do that on a grand scale with real estate in the late 90’s through the early 2000’s, and our grandchildren and great grandchildren will hear stores of the great recession as a result. So in a very real sense, real estate simply doesn’t fit with the model of Wall Street, even though the value of U.S. real estate is estimated at about $23 TRILLION dollars.

That’s certainly not to suggest that one can’t make money on Wall Street. We all know that you can.

But what if there’s a better way… and it turns out that the only reason you’re naturally disposed to buying investments from Wall Street is because of MARKETING rather than REASON?

Consider this:

Right now, a wise investor can acquire high-quality, newly renovated rental properties in an EXCELLENT real estate market for about $50,000 each. And that asset has these characteristics:

• It’s newly renovated
• It’s occupied by a tenant
• It’s under the care of a highly experienced property manager
• The maintenance costs are guaranteed to be covered
• The monthly rent is paid every single month, and on time every time, by none other than the government itself!
• The NET cash flow is north of 10%... and that doesn’t even include appreciation or tax benefits
• And to top it all off… they’re GUARANTEED! In other words, if after a year, you don’t like how it’s going, you can get your money back!

Can you do anything like that on Wall Street? No, you can’t.

Even if you could, folks… here’s a real issue. The stock market is not being allowed to use the rules of capitalism. In other words… there’s another factor in stock values that has grown in significance to the point of rendering the values of the companies themselves as increasingly meaningless when valuing the stocks… and let’s be clear… there’s a big distinction between the value of a stock and the value of the company represented by that stock.

What is that factor that’s throwing the value of stocks so far out of line versus the companies they represent? I’ll tell you on the next episode of Self Directed Investor Radio, which will be ready for you two days from now, on Wednesday, March 23.

But my friends… please, please, please… don’t miss the EXTRAORDINARY edition of the sister show of this podcast, called SDI Money Law, hosted by attorney extraordinaire, Tim Berry. Tim has discovered something in the law for self-directed 401k and IRA owners that is absolutely SHOCKING… this could easily be the biggest legal discovery of the past 10 years.

How do you get to hear that? Very simple: Make sure you’re on the SDI Money Law email notice list by texting the words SDIMONEYLAW with no spaces or periods to 33444 right now. Again, text the phrase SDIMONEYLAW to 33444 right now, but use no spaces or periods.

If you’ve ever been concerned about the potential for performing a prohibited transaction, or for being hit with taxes over doing a real estate flip inside your retirement account, then let me tell you…. You don’t want to miss tomorrow’s episode. Text SDIMONEYLAW to 33444 right now…

And if you’re one of the wise investors looking to take this wonderful opportunity to cut and run from the stock market and redeploy some of your portfolio into assets that are simple, safe and strong… assets that make for GREAT investments, then stop by SDI360.com/consultation to set up a time to chat with us. We’d love to help YOU make great investments that are simple, safe and strong!

My friends… invest wisely today, and live well forever!

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