On Monday January 26th, 2014 the price of a first class stamp went up 6.5%, from $0.46 to $0.49. No one is really surprised by this, so where’s the lesson and how can it help you be a more successful real estate investor?
LESSON 1: Utility — The utility of a stamp today will be exactly the same as the utility of that stamp on Monday. The VALUE or UTILITY of the stamp are the benefits that the stamp provides. Regardless of the price, the UTILITY of the stamp will remain the same; what really happened is that the utility or value of your CURRENCY went down. Today, it takes more dollars to buy the same amount of stamp utility as it did before Monday.
My prediction for 2014 is short and sweet. “More Federal stimulus ahead causing malinvestment in localized asset bubbles”. I'll say that again but in English this time: “People do stupid things with easy money and there is a lot of easy money floating around. So, when you get some of this easy money don't be stupid with it!”