Key Investment Trends: What Robert is Focusing on Now
Robert is investing in three key areas—oil, silver, and housing. Here’s a simple breakdown of why he sees them as good opportunities.
1. Oil: Demand is Still Growing
As countries like China, India, and Eastern Europe develop, their need for oil increases. Even with a push for clean energy, oil will remain essential for years.
Robert believes oil prices could reach $200 per barrel, which could put pressure on the economy but also push the world to develop alternative energy sources like solar power.
2. Silver: An Underrated Investment
Robert sees silver as a great investment for two reasons:
• It’s used in technology – Unlike gold, which is mostly stored, silver is used in electronics like phones and computers. Since it gets used up, its supply decreases, making it more valuable.
• It’s a form of money – When the U.S. dollar weakens, people turn to silver as a safe asset. Historically, silver has been undervalued compared to gold, meaning it has room to grow.
Silver ETFs have made it easier for people to invest without storing physical silver. While some experts think silver could match gold’s value, Robert remains cautious and advises investors to do their own research.
3. Housing: The Future is Rentals
Housing demand is increasing, raising prices for materials like concrete. China’s high demand has even caused shortages in the U.S.
Since wages aren’t keeping up with housing prices, more people are renting instead of buying homes.
Robert believes rental properties are a smart investment because they provide a steady income, even during economic downturns. While many homeowners lost money during the 2007 crash, landlords benefited as more people turned to renting.
Understanding Market Behavior
Robert says that human emotions influence markets. In Vietnam, he noticed people rushed to buy gold during crises. Seeing this pattern, he bought gold when prices were low and later profited when they rose.
His key lesson: Gold and silver are always valuable, easy to sell, and hold their worth in uncertain times.
Liquidity: How Easy is it to Sell?
Liquidity refers to how quickly an asset can be turned into cash.
• Retiring baby boomers are moving to places like Arizona and Nevada, making these areas great for real estate investment.
• Meanwhile, cities like Detroit are losing jobs, leading to falling property prices and rent.
Unlike stocks or gold, real estate is harder to sell quickly, so investors need to carefully track trends.
During the 2007 crash, many overpaid for properties and struggled to sell them when prices fell.
Robert’s advice: The harder an asset is to sell, the more important it is to understand its market trends.
Knowing When to Sell: The "Construction Crane" Rule
Robert shares a simple way to predict when a real estate market is about to peak—watch for construction cranes.
If a city’s skyline is filled with cranes, it means too many buildings are being built, signaling that prices may soon drop. Smart investors sell before this happens.
The 20-Year Market Cycle
Robert has noticed a 20-year pattern between stock markets and commodities like oil, gold, and silver.
• 1960-1980: Commodity prices rose while stocks struggled.
• 1980-2000: Stocks thrived while commodities fell.
• 2000 onward: Stocks struggled, and commodities became strong investments again.
If this pattern continues, stocks may rise again while commodities decline around 2020. While no one can predict the future, understanding cycles helps investors make better decisions.
Robert recommends reading books by Jim Rogers, a market expert, to learn more about these trends.
The Biggest Lesson: Knowledge = Wealth
Robert emphasizes that it’s not the asset that makes someone rich—it’s their understanding of it.
For example, if someone bought gold at a high price in 1979, they would have waited decades just to break even. This shows that investing without knowledge can lead to losses.
When people ask if real estate is a good investment, Robert doesn’t give a simple answer. Instead, he asks:
"Are you a good investor?"
He shares a lesson from Vietnam, where an old woman selling gold taught him that gold’s value isn’t just about price—it’s about why people want it.
This experience helped him realize that intelligence and information—not assets—create wealth. Even the best investments can lead to losses if someone doesn’t fully understand them.
Final Takeaway: Smart Investing Requires Knowledge
Simply owning assets won’t make someone wealthy. The key is understanding trends, cycles, and market behavior.
Knowledge is what separates successful investors from those who struggle. Before investing, research carefully, think long-term, and make decisions based on trends—not emotions.
