It is one of the major investment trends in recent months. At each corner gets the desperate savers whispered: Just out of money and values ??into real values! What to make of it? First, we should consider the two asset classes in detail.
Money values ??are values ??that are on paper. Also called nominal values ??because they confer a certain nominal value - but no fixed real value. They are based on promises. For example, a loan: it is ultimately not much more than the promise of a debtor, the money you have lent him to pay interest and repay one day. The currency loses its value or inflation rises significantly, then you are protected so very bad. Although they get their money back to nominal, but it is buying less than before. Monetary values ??to the next federal bonds or Treasury bills also include savings accounts, fixed deposits, savings plans and life insurance.
Investment tip: Get rid of debt!
Property values ??are not deposits, can touch something or securitize, the handle can be: So, stocks, real estate and commodities, but also exotic investments such as watches, wine and art. All things that have real value, even with the inflation - remains - at least in theory. And so we come to the crucial point: the current hype surrounding property values ??based on the fact that many investors expect a sharp increase in inflation. Or at least get this expectation from the media or their bank manager drummed.
In this calculation, however, there are two unknowns. First: Is it really too much of rising inflation? This question is among those in the current economic environment are most difficult to answer: Because on the one hand, while the central banks flood the economy with new money - that speaks for inflation. On the other hand, are by the financial crisis, particularly in the U.S. market has destroyed billions in assets - eg many homes have dropped in value. In addition, come save the economy, both in America and in many parts of Europe do not really need in the aisles and many indebted countries - that speaks rather stable or even falling prices. Although many indicators suggest that the continued stimulus measures taken by central banks ultimately lead to inflation - which is certainly not.
If the second question: creating material assets in case of inflation, it actually get to their value, at least? Studies show that such a rise in shares though phases, however, often offset the price increases are not correctly. This is especially true for companies that can not pass on rising costs to their customers. An automotive supplier, for example, is dependent on a few car manufacturers would have more difficulty than a consumer goods manufacturer whose products consumers need for everyday life.
As long as it is not clear whether the pendulum deflects toward high inflation, investors should not only focus on property values. Instead, a mix of property values ??is recommended (stable, non-cyclical stocks, real estate in good locations and a dash of gold as an insurance crisis) and monetary values. The savings account has been used so not necessarily. In question but also bonds of financially sound states come with strong currencies. Equally important as the right investment mix is ??to observe the development in terms of inflation closely and react to changes.
Money values ??are values ??that are on paper. Also called nominal values ??because they confer a certain nominal value - but no fixed real value. They are based on promises. For example, a loan: it is ultimately not much more than the promise of a debtor, the money you have lent him to pay interest and repay one day. The currency loses its value or inflation rises significantly, then you are protected so very bad. Although they get their money back to nominal, but it is buying less than before. Monetary values ??to the next federal bonds or Treasury bills also include savings accounts, fixed deposits, savings plans and life insurance.
Investment tip: Get rid of debt!
Property values ??are not deposits, can touch something or securitize, the handle can be: So, stocks, real estate and commodities, but also exotic investments such as watches, wine and art. All things that have real value, even with the inflation - remains - at least in theory. And so we come to the crucial point: the current hype surrounding property values ??based on the fact that many investors expect a sharp increase in inflation. Or at least get this expectation from the media or their bank manager drummed.
In this calculation, however, there are two unknowns. First: Is it really too much of rising inflation? This question is among those in the current economic environment are most difficult to answer: Because on the one hand, while the central banks flood the economy with new money - that speaks for inflation. On the other hand, are by the financial crisis, particularly in the U.S. market has destroyed billions in assets - eg many homes have dropped in value. In addition, come save the economy, both in America and in many parts of Europe do not really need in the aisles and many indebted countries - that speaks rather stable or even falling prices. Although many indicators suggest that the continued stimulus measures taken by central banks ultimately lead to inflation - which is certainly not.
If the second question: creating material assets in case of inflation, it actually get to their value, at least? Studies show that such a rise in shares though phases, however, often offset the price increases are not correctly. This is especially true for companies that can not pass on rising costs to their customers. An automotive supplier, for example, is dependent on a few car manufacturers would have more difficulty than a consumer goods manufacturer whose products consumers need for everyday life.
As long as it is not clear whether the pendulum deflects toward high inflation, investors should not only focus on property values. Instead, a mix of property values ??is recommended (stable, non-cyclical stocks, real estate in good locations and a dash of gold as an insurance crisis) and monetary values. The savings account has been used so not necessarily. In question but also bonds of financially sound states come with strong currencies. Equally important as the right investment mix is ??to observe the development in terms of inflation closely and react to changes.
