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Time to Unwind "Chimerica"

4/16/2020

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So apparently Japan has started to "bring back manufacturing" from China. Perhaps another country should emulate them...

If this Coronavirus trainwreck has shown one thing, it's that the Washington consensus of "Chimerica" and offshoring manufacturing and much of our supply chain over there was just a woefully bad idea. It's not just the lost jobs (3.2 million between 2001 and 2013 by one estimate), it's the risks posed by outsourcing every critical product.

Honestly, the numbers are ridiculous. "Last year, China accounted for 95 percent of U.S. imports of ibuprofen, 91 percent of U.S. imports of hydrocortisone, 70 percent of U.S. imports of acetaminophen, 40 to 45 percent of U.S. imports of penicillin and 40 percent of U.S. imports of heparin, according to Commerce Department data." 

Hell, an iPhone would only cost 5% more if assembled in the United States (albeit sourced internationally).

Unwinding Chimerica will take a long time, probably a generation. But the first step is to gut intellectual defense of it And at this point, defending this is just antiquated. It would be like advocating for feudalism or something like that.
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Also seen on Facebook.
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Stewardship Investments Makes Inc. Midwest 250

4/15/2020

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After placing 3349th on the Inc. 5000 list for 2019, Stewardship Investments, LLC have now placed 52nd on the "The 250 Most Successful Companies in the Midwest." 

It's nice to rack up all these awards. Congrats to all our staff and keep up the good work!
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New Article on Thrive Global: How to Pull Yourself Out of a Rut

4/14/2020

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I have a new article out on Thrive Global (my second for them and well, actually, it's been out for a little while) about how to pull yourself out of a rut. This is a common thing for many, many people. Indeed, it feels like at least once every single year I fall into a terrible rut and can't get myself to do much of anything other than waste my days away doing little of anything of value. 

So how do you pull yourself out of a rut? Well, my biggest piece of advise would be to aim small.
Huge commitments are overwhelming, whereas small ones are quite obviously not. It’s like Alcoholics Anonymous’ famous idea of taking it “one day at a time.” Forget the grandiose goals and dreams and decisions and just make tomorrow a success. As a famous Chinese proverb puts it, “Every thousand mile journey begins with the first step.”
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But this step doesn’t necessarily have to be in a particular direction.  I’ve written elsewhere that the key to happiness and productivity is to “find a path you enjoy being on that leads you in the direction you want to go.” In this case, however, you don’t even need to find a path you enjoy. Just get back on a path. You can switch paths after you’ve started walking again.
In the piece I go into much more detail and many more examples. So please check it out, especially if you currently find yourself in such a rut.
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My Brother and I Discuss Property Management amidst the Coronavirus Crisis

4/13/2020

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This was our first shot at a video for BiggerPockets where my brother and I discuss property management issues particularly regarding tenant relations in general and the current crisis in particular. Even without the pandemic and lock down, deescalating situations with tenants is a crucial skill for property managers.

This video came out a bit rough so we will film another more specifically to tenant relations. But the content is still good so I decided to go ahead and post it here.
You can also see my articles on tenant relations here and managing during the Coronavirus here.
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The Good Stewards Podcast: Building a Business that Inspires You

4/11/2020

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We'll take a break from the Covid-19 and recession talk to go back to the basics of real estate investment, or in this case, building a business in general. This episode of The Good Stewards Podcast delves into the importance of building a business that inspires you and how to go about it.
Episode 17: The Dreaded HOA
Episode 18: HELOC's
Episode 19: Hiring and Firing
Episode 20: A "Wholetale" Example
Episode 21: A Guide to Partnerships
Episode 22: Property Insurance
Episode 23: Myths of Real Estate
Episode 24: What the Pandemic Means
Episode 25: Investing in a Pandemic
Episode 26:How Covid-19 is Similar and Different to 2008
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Inflation Incoming (in all likelihood)

4/9/2020

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The Federal Reserve and Treasury Department have simply unleashed helicopter money QE Infinity on the United States and while it might be necessary, it will certainly have consequences. The total amounts to a mind-boggling $6 trillion ($2 trillion in fiscal stimulus and $4 trillion in Federal Reserve actions). Unprecedented to say the least!

Seeking Alpha makes a very strong case that inflation is on the way in an important article, the summary of which reads,
Over the last three weeks, the M2 money supply has exploded by a whopping $532 billion.

This is more than the entirety of QE1 from December to June 2010, during which time M2 increased by $458 billion.

Over the last three weeks money supply is expanding at 26x the rate of QE1 during the 2008 financial crisis.

Direct stimulus checks to consumers as part of the $2.1 trillion stimulus bill haven’t even been handed out yet, and even more stimulus is being planned in Congress as we speak.
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The effect of all this will most likely be massive price inflation, a fall in bond markets, and a spectacular rise in commodities markets led by gold and silver.
After all, the United States is running a huge deficit, so where is this money going to come from other than for it to just be printed by the Federal Reserve?

(Crisis management, by the way, is another good reason not to run peacetime deficits. Oh wait, did I say peacetime? Well, this is probably another good reason not to be running seven low-intensity wars at the same time for no good reason. But that's the topic of another article.)

Anyways, it would probably be a good time to start considering the purchase of some inflation hedges.
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New BiggerPockets Article: The Essential Importance of Cash Reserves

4/8/2020

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My newest article for BiggerPockets is up. It covers how important keeping strong cash reserves is for a business (and individual for that matter). Yes, it's not easy, especially at first. But building strong cash reserves is essential to survive downturns and even prosper from them.

You can compare savings account products to see which one best suits your needs for both your business and yourself.   

Instead Americans are swimming in debt; both individuals and businesses. Some of this comes from the "growth for the sake of growth" philosophy which I take on with, what I must say, is some of my better literary work,
The obsession with growth is also something that needs to be mitigated. Growth for the sake of growth is a terrible way to run a business. Indeed, growth at any cost is the philosophy of a malignant tumor. And cancers tend to kill their host.
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On the other hand, to extend this morbid metaphor further than it deserves, steady and strategic growth bolstered by growing and maintaining solid cash reserves is like a healthy child growing into adulthood. It’s the way businesses should be built—on top of a strong foundation instead of beneath a mountain of debt.
Check it out!
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The Good Stewards Podcast: How This Recession is Similar and Different than 2008

4/7/2020

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So after episodes on what this pandemic means and how to invest in a pandemic, on this episode of The Good Steward Podcast, we take a good look at how this pandemic-induced recession differs from the 2008 financial crisis and recession that followed. There are a lot. Check it out!
Episode 16: Using Data for Marketing
Episode 17: The Dreaded HOA
Episode 18: HELOC's
Episode 19: Hiring and Firing
Episode 20: A "Wholetale" Example
Episode 21: A Guide to Partnerships
Episode 22: Property Insurance
Episode 23: Myths of Real Estate
Episode 24: What the Pandemic Means
Episode 25: Investing in a Pandemic
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New BiggerPockets Article: The Fed Cut Interest Rates to 0%

4/6/2020

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The Coronavirus and subsequent lock down has thrown the economy into a complete nose dive and to compensate, the Federal Reserve has cut the Fed Funds rate to 0 percent. This is what my new article for BiggerPockets discusses. Of course, that 0 percent interest rate isn't what banks will offer.
These zero percent rates are not for you, of course. The discount rate is the rate at which banks can borrow directly from the Federal Reserve; the benchmark rate is used as a sort of baseline by institutions throughout the economy. As The Financial Dictionary puts it, the benchmark rate is "...the minimum interest rate investors will demand for investing in a non-Treasury security.” 
In the article, I discuss what the ramifications of this are for the market on the whole and particularly with regards to real estate investors. This includes anwering the following big three questions:

1) Should I sell?
2) Should I buy?
3) Should I refinance?

Check it out for the answers!
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New Article for ThriveGlobal: How to Pull Yourself Out of a Rut

4/5/2020

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My recent piece for ThriveGlobal is up; titled "How to Pull Yourself Out of a Rut." Recently I was in such a rut, which is the inspiration for this piece. As  I noticed,
While in a rut, I’ve found myself overwhelmed with what I would want and even need to do to get back on track. Say you want to lose weight. Well you’ve got to buy healthier food and eat healthier and work out and create a schedule and you need to do all of this consistently for months on end. That’s a lot for anyone to take, especially someone in a state where they lack most, if not all, motivation. 
But the big things will keep you stuck. There just too much to deal with at one time. 
Instead, the thing you need to do to get out of a rut is to go against the grain. Instead of asking the big questions, ask the small ones; what do you need to do to have a successful tomorrow
"Win the day" as my Oregon Ducks motto says. Then, bit by bit you pull yourself back up.

The piece goes into much more detail so please check it out.
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    Andrew Syrios

    "Every day is a new life to the wise man."

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