Everyone should have heard of inflation. Hyperinflation has occurred in many countries in the past. For example, in Germany in the last century, too much currency was issued, which led to a large devaluation of money and many homeless people on the roadside. Han even used currency to light fires to keep warm; the same is true in Zimbabwe, where everyone has become a "billionaire" and even needs to pay bundles of banknotes to buy goods.
This is the consequence of hyperinflation. Having more money will not make everyone "rich", but will lead to serious consequences. Therefore, with these lessons learned, the currency issuance of various countries is strictly controlled in order to prevent the occurrence of hyperinflation.
However, inflation has always existed in our lives. I believe everyone can feel it. The "purchasing power" of money is also declining year by year. Compare 100 yuan in the 1990s with 100 yuan now. , certainly not of equal value. However, this kind of inflation will not bring serious consequences, but will stimulate economic development.
But for us ordinary people, the existence of inflation will still make the money in our hands depreciate to a greater or lesser extent. Especially in our country, the awareness of savings is very high, everyone has savings, and currency As inflation continues, the money in people's hands will definitely depreciate.
Now, a new round of inflation seems to be coming.
A new round of inflation may come
Affected by the epidemic, the global economy has been "hit". Relevant data shows that the overall global economy shrank by approximately 3.5% in 2020. Under such circumstances, in order to speed up the resumption of work and production and restore economic levels, all countries are "releasing money" and increasing currency issuance.
This includes the US$1.9 trillion stimulus plan in the United States, which means that a total of US$1.9 trillion in "relief funds" will be distributed to the people. It is reported that on March 11, local time , this plan has officially begun to be implemented. Many economists say this is likely to lead to higher inflation.
According to analysis by ING senior interest rate strategists, starting from April 2021, the inflation rate may rise to 3.5. At the same time, the same is true for many countries, with currency issuance continuing to rise. Even my country's currency issuance in 2020 increased by about 20 trillion yuan compared with 2019.
These measures will stimulate consumption and investment, causing prices to rise. Perhaps there will be a new round of inflation in the next few years. In this case, we must be "prepared" in advance to prevent the money in our hands from devaluing. So what kind of assets can allow us to resist inflation? Listen to the analysis from professionals.
Can real estate still protect us from inflation?
First, let’s take a look at real estate. As we all know, real estate is no longer just a "residence" in the simple sense, but also a necessary "asset" for every family. Since more than ten years ago, the trend of "real estate speculation" has begun. At that time, our country House prices are showing an increasing trend year by year.
According to data from the China Housing Price Market Platform, between 2010 and 2020, housing prices in the first-tier city Beijing increased by as much as 176.5%; in the second-tier city Hefei, housing prices increased by as much as 173.7%; and in the third-tier city Luoyang, housing prices increased by as high as 145.6%.
If house prices rise all the way, it can be used as a real estate against inflation. But looking at the current real estate market, although housing prices are still rising, according to data from the National Bureau of Statistics, the rate of increase in housing prices in 2020 is slightly "slower" than in 2019.
According to this trend, future housing prices may tend to be "stable". By then, housing prices will no longer "rising" and may not be able to resist inflation.
Physical gold, the "hard currency" to resist inflation
In fact, in addition to houses, we have many choices to resist inflation. As economist He Fan said, some financial Assets, real assets, etc. can also be used to protect against inflation.
For example, physical gold, this precious metal, is a physical asset recognized as "hard currency" globally. It is different from currency in that it is a valuable item, and the value of gold has always been It is "constant" and can "preserve" its value under inflation, so it can naturally resist inflation.
In fact, under inflation, as ordinary people, if we maintain the value of our assets, we have resisted inflation. And no matter what asset it is, it cannot be 100% sure that it can maintain its value in the face of inflation. Therefore, we cannot blindly "invest" and must arrange our assets reasonably.
Which asset do you think can “preserve” or “appreciate” in value? Welcome to leave a message for discussion.