Stocks are close to record highs. Real estate in coastal cities like San Francisco, San Diego, LA, New York, and Miami are also at record highs. Bonds provide low yields and CD rates are pitiful. It’s really difficult to find great investment ideas now that everything has run.
But I think there’s a great investment opportunity that is overlooked and can provide 10%+ annual returns for the next five years. That opportunity is in real estate crowdsourcing through large platforms like Fundrise to invest in the heartland of America!
The key is to invest in a trend. Now that Donald Trump is president, investing in Middle America where net rental yields are 10% are higher compared to <4% on the coastal cities makes a lot of sense. The rise of real estate crowdsourcing platforms now facilitates capital much more efficiently and cheaply to undervalued regions of the country.
Why Invest In The Heartland Of America
Do you know who is guaranteed to lose their job in 2017? The people who need to find new jobs this year are the approximate 7,000 staffers appointed to U.S. government positions by President Obama’s team. That’s just the way it is as President Trump takes reign for the next four years and chooses his own people.
Power is ephemeral, which is why in order to promote government harmony, the Hatch Act of 1939 restricts the political activities of Federal employees. Basically, the Act says: Don’t bring your politics to the office.
While the private sector operates without a similar Hatch Act restriction, common sense says it’s still better not to go crazy if your boss has a different political point of view.
Who Else Wins Or Loses?
Now that we know from a personnel level who the winners and losers are of a Trump victory, let’s take a look at the election results from a macro level.
The below chart is the final electoral college tally. As you can see from the map, the losers are California, Oregon, Washington, Nevada, Colorado, New Mexico, Minnesota, Illinois, New Hampshire, Vermont, New York, Maine, Massachusetts, Rhode Island, Connecticut, New Jersey, Delaware, Maryland, Washington D.C. and Hawaii.