Postcards: A Corny Idea...

Monetary inflation will return. While a downturn might come, use it to your advantage to buy THIS asset. ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more You are a free subscriber to Postcards from the Florida Republic. To upgrade to paid and receive the daily Republic Risk Letter, [subscribe here](. --------------------------------------------------------------- [Postcards: A Corny Idea...]( Monetary inflation will return. While a downturn might come, use it to your advantage to buy THIS asset. [Garrett {NAME}](floridarepublic) Sep 4 floridarepublic   [READ IN APP](   Market Update: As I noted yesterday… look for lower highs and lower lows. Today, we had a short-term pop that immediately fueled broader institutional selling. The MACD is starting to turn negative, and the S&P 500 ETF (SPY) is testing its 20-day moving average and its 50-day moving average. If it breaks under those levels, this could fuel a deep, negative momentum situation. Let’s stay on top of this and look for new opportunities. --------------------------------------------------------------- Dear Fellow Expat: Greetings from Washington, D.C. I’m spending the day at an Ideas Conference with many investors and financial experts. So far so good. We’re down in the Wharf, overlooking the city's southern end - out toward where I used to work during graduate school at National Harbor. There was nothing here when I was in school 15 years ago. It wasn’t safe down on this side of the city. It’s just pure wealth - a dock for massive boats and the well-monied who came to D.C. as the fiscal budgets exploded. This city has really grown up. It feels like a different world. No wonder so many people live in a bubble here. Today, when prompted, I talked about monetary inflation… the idea that central banks will continue to print and pump capital into the system to prevent deflationary problems. It’s just the way they work. It’s just the nature of the system. So… what’s an interesting hedge against this inflation? Well, we can talk about gold and Bitcoin and best-in-class stocks. But don’t discount real estate - and don’t walk away from a sector that will certainly benefit from the combination of higher land and higher agricultural economies. Farmland. Why Farmland? Investing in farmland REITs is one of those moves that sneaks in under the radar but packs a powerful punch for any serious investor’s portfolio. Farmland isn’t just dirt and crops; it’s a strategic play that offers three distinct advantages: - Portfolio Diversification: Farmland delivers returns that dance to a different beat than traditional asset classes like stocks, bonds, and crypto. This uncorrelated nature means adding farmland to your portfolio is like throwing a safety net into the ring—helping to smooth out the bumps and bruises of market volatility. - Inflation Hedge: When inflation kicks up, farmland stands tall. Unlike stocks or bonds, farmland’s value has moved almost in step with the consumer price index—about a 70% correlation historically. As food prices rise, so do the returns from farms that use participation rents since they can charge more for their crops. This ensures the asset class doesn’t just survive inflation; it thrives on it. - Attractive Total Returns: Farmland isn’t just about the land but the dual income streams—rental income and capital appreciation. From 1992 to 2021, these combined forces delivered an impressive average annual return of 11%. It’s the kind of solid performance that makes farmland an investment and a cornerstone of a smart, resilient portfolio. What’s the Play? There are two REITs lined up in the space. Farmland Partners Inc. (FPI) Farmland Partners is one of the largest publicly traded farmland REITs in the U.S. The company owns more than 160,000 acres across 19 states. The REIT focuses on acquiring high-quality farmland and leasing it to farmers, earning revenue from rental income and appreciation in land value. The REIT diversifies its portfolio across various crop types, including row crops and specialty crops like fruits and nuts. FPI exposes investors to the agricultural sector, offering portfolio diversification, inflation hedging, and potential capital appreciation while maintaining a relatively low correlation with traditional equity markets. Gladstone Land Corporation (LAND) Gladstone Land Corporation is a farmland REIT that owns over 113,000 acres across 15 U.S. states. It focuses on fruits, vegetables, and nuts. This is an important differentiation in the space. The company owns high-quality farmland and leases it to operators of premium crops. This provides higher returns and greater resilience to market volatility. Gladstone Land emphasizes long-term leases with built-in rent escalations, aiming to provide steady, growing income to investors. Another important element: Gladstone ensures that its properties near access to ample water resources. This helps the company overcome prospective environmental challenges. At the moment, both REITs are under pressure. We continue to witness renewed volatility across the market. But short-term liquidity issues can provide incredible buying opportunities ahead. Back in April 2024, when we witnessed challenges in the money markets and weakness due to tax payments, LAND fell to $12.31 per share. But as the markets recovered, the stock rebounded back over $15 by July. FPI had similar weakness in April, with shares dropping to $10.50 per share. After the S&P 500 hit oversold territory, the stock rebounded above $11.70 by July. It’s important to buy these types of assets on weakness. Don’t be shy as you continue building cash in this environment. These are the inflation-protection assets that should be a cornerstone of any long-term portfolio. Stay positive, Garrett {NAME} Secretary of Finance Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. Under company rules, editors and writers cannot recommend their positions. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.   [Like]( [Comment]( [Restack](   © 2024 Garrett {NAME} 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()