Here's some old school RUN DMC for you:

Hard times spreading just like the flu
Watch out homeboy, don't let it catch you
P-p-p-prices go up, don't let your pocket go down
When you got short money you're stuck on the ground
Turn around, get ready, keep your eye on the clock
And be on point for the future shock

I remember spitting those rhymes without a care in the world in probably seventh grade. And now, the prophecy is upon us.

Which brings me to discussing investments. What's investment do you have in your pocket? don't let your pocket go down
I think of investments in 3 categories.

FEED

SLEEP

BLEED

Is a refrigerator as an investment? It can be any of the three categories.

FEED

A refrigerator can FEED, that is, provide an ongoing return. For example, I know someone that works in the the tree seedling industry. Once a year, seedlings are harvested and stored in a large refrigerator for a few weeks until distributed to foresters. For the other 45 weeks of the year, the company rents the commercial refrigerator to farmers who need seasonal cold storage. So, for 45 weeks each year, the refrigerator is FEEDING the company with cash from rent.
Investments that feed include stocks with dividends; bonds; bank savings accounts; rental property; annuities, and staked crypto. Splinterlands cards are FEED investments.

SLEEP

So, can the refrigerator be a different type of investment? Sure SLEEP.

My little blue fridge is in the sleep category of investments. It has classic styling and yet it is energy efficient. I bought it a few years ago. I am holding it for when the market on dorm size fridges are at the peak. Typically, that's in the Fall, when kids go to college. Originally, I bought it in Spring to resale in a few months, but then a pandemic shutdown the demand as college students stayed home.

SLEEP investments don't have a periodic payout like FEED. There's no rent this fridge earns. No one pays dividends on it. It's just resting until the market is willing to pay more than I paid for it.

I watched American Pickers, that's a show about antique hunters. The pickers were trying to low ball on an old carnival ride/equipment. The owner looked at them and said "Iron don't eat." When investments SLEEP, they don't cost the owner anything to hold the investment. In reality, there are very few truly SLEEP investments. Stocks without dividends, unstaked crypto, gold, art, postage stamps, and antiques can all be SLEEP investments.

BLEED

So what's the third category of investments, and is baby blue fridge one? That's the bleeders. BLEED is an investment that has an ongoing cost. If I plug in the refrigerator, it will cost me electricity each month, and if I use it, it will bleed value.
BLEED investments are not bad, but they are risky. A prime example is real estate. Some people think of real estate, like raw land, as SLEEP. But it's not because of property taxes. Rental property can be more BLEED than FEED, like when the property is vacant; or the cost of taxes and insurance are greater than the rent.

I remember talking to a rancher who was selling cattle at auction and losing money. I asked him "Why?." He said, "I got to stop the bleeding." Cattle eat. Everyday, lots of corn, grass, minerals and medicine. Holding cattle was bleeding the rancher dry. Property purchased on loan is similar. A Fix and Flip is great unless the home lingers on market too long. The interest payments bleed away all the profit. I love classic cars, but they bleed insurance and maintenance expense, and sometimes transmission fluid...

So we make a pretty big loop to get back to Run DMC and the forthcoming hard times. And you may wonder what I advise I have for you?

If the investment in your pocket FEEDs, let it be. Don't fret too much about the underlying valuation of the dividend paying stock. Markets rise and fall. Stack the returns or spend them.

If the investment in your pocket is aSLEEP. Let it be. Find something else to sell if you need cash or pick up a second job. The market will reward you in the future. There will be a freshman in the fall that needs my fridge!

If the investment in you pocket BLEEDs, Watch it closely. When it bleeds too much, sell it. Costs that are reoccurring require constant review. An empty barn costs the rancher much less than a barn full of cattle. Stop the bleeding. And buy the BLEEDERS when they produce more than they cost.

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