Inflation has arrived!! While some experts thought that inflation would be transitory, it appears that it is here to stay – at least for near-to-midterm. There are three (3) types of inflation: cost push inflation, demand pull inflation, and the lesser understood monetary inflation. Each type of inflation can affect investment returns.
All three are types of inflation are intertwined and related – yet each have individually distinct characteristics. Demand-pull inflation is when too many Dollars are chasing too few goods. Due to COVID, the US Congress has adopted a plethora of fiscal relief measures designed to provide financial help to consumers and businesses most effected by the pandemic. Cost push inflation is the flip side of demand pull inflation. The news media has saturated the airwaves with stories of the broken global supply-chain – again because of COVID. The World’s fragile supply chain has resulted in producers bidding up the cost of inputs. Logistics have also increased the cost of goods. Fewer goods, more Dollars equals inflation. Yet the third type of inflation dynamic may be the most pernicious – monetary inflation.
There is simply too much global liquidity. America’s M2 money supply has increased over forty percent (40%) in the past two years! The US deficit has grown to over 100% of GDP! Eventually either one of two things must happen – either interest rates must rise, or the US Dollar must precipitously slide in value. If interest rates increase, the US GDP will decrease – possibly dropping to recessionary levels. If the Federal Reserve (the FED) does not sufficiently raise interest rates, then inflation will most likely gain momentum. Currently, the FED seems to think it can “engineer a soft landing”. Unfortunately, the FED’s historic record of successfully fighting inflation is questionable – at best. Historically inflation has ran well ahead of the FED – so much so that drastic monetary remedies were required to slay the inflation beast. These measures destroy the value of bonds and equities alike. To hedge against these twin catastrophes, investors are advised to invest in either hard assets, commodities, or financial instruments with short duration risk. This is where WINPRO can help.
WINPRO provides investors with alternative debt investing platforms ideally suited to hedge against inflationary risk. WINPRO’s debt investing platforms allow investors to hedge against duration risk, benefit from higher interest rates, and diversify investment portfolios.
WINPRO offers investors:
Safe Investment – all WINPRO’s commercial real estate loans are collateralized providing investors bond-like security.
Cash Flow – 10% Preferred Return distributed to Investors quarterly.
Loan Fee Sharing – 50/50 Split Investors/Management (Yield Accelerator)
Profit Splits – 80/20 after the preferred return to Investor.
Capital Appreciation – Loan Purchases (Yield Accelerator).
Diversification – Alternative SEC Reg D. Debt Fund
Secure Investment – All capital secured by commercial real estate property(s)
Tax Advantages – Potential Capital Gains Treatment.
Professional Management – Over 50 years of Commercial Real Estate experience.
Be sure to let your friends, family and colleagues know about WINPRO’s exciting investment platforms.
If you have any questions, or want to know how to invest, please call WINPRO at 720.344.1174, email stan@winprofunds.com, tony@winprofunds.com.
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