Real Asset

Finance allah shmoop What is Ah hard asset Yeah It

takes a lot of hard work to get an asset

like that Okay So hard asset is just one that

you can bang on touch Engage with cell Alright examples

Oil it's Hard asset gold Hard of vintage nineteen Fifty

seven Ferrari with beige leather interior hard four thousand head

of longhorn cattle in texas A commercial building in the

best part of town All of these arm or less

commodities Hard assets Well okay Okay The categories Rare cars

art coins stamps stuff like that that's where they fit

So what do you care if something is ah hard

asset or a soft one Well most or all hard

assets are commodities and they generally do very well in

periods of very high inflation when you know stocks were

getting crushed And yeah the feds raising rates appoint a

quarter now forever Well equities and bonds will get crushed

Commodities well generally keep up with the spike in prices

causing the fed raised rates in the first place So

they're a good hedge for most investment portfolios And not

all of them are great forever like check out riel

Inflation adjusted oil prices the last few decades you had

not a good run Most not all do well though

an oil will likely have its day in the sun

again At some point you lan When in doubt remember

what kim kardashian and warren buffett said A good asset

is hard to find and a hard asset is good

to find But we won't tell you who said which