Record inflation, which turned out to be the payment for the rapid recovery of world GDP after the pandemic and overtook such different countries as Russia and the United States, is becoming a major factor in the global economy. More and more economists are inclined to believe that this is not a temporary effect of the pandemic, but high inflation is with us for at least two to three years. This means not only a rise in prices, but also a change in investment strategies.
Inflation is always a rise in prices. With low inflation, prices rise very slowly, but still rise. When they say that inflation is going down, it means that the consumer basket is going up in price more slowly than in previous years.
Inflation can rise for many reasons: Increased demand. It happens that people suddenly start buying more of a certain product. For example, when mobile phones became affordable, everyone wanted to use cellular. Cellular operators did not have time to immediately adjust to the high demand: there were not enough towers and free frequencies. Therefore, the prices for mobile communications were very high. Any deficit causes prices to rise rapidly. But when operators got additional capacity, prices began to decline.
Most American bank economists surveyed by The Wall Street Journal in early July predicted that high (albeit gradually decreasing) inflation will continue in the United States until at least the end of 2023. On average, the survey gave 2.58% annual inflation for these three years - and for the United States this is the highest level since 1993, the WSJ recalls.
This means very simple math - If you don't invest your money now, they will simply lose their value over the next few years.
It is, of course, for you to decide how to invest your savings, but our answer remains the same:
Invest where the risks are minimized, where you understand everything and you sleep well, where the object of your investment does not move, does not depend on macroeconomic changes and this investment object is REAL ESTATE.
Then do not say that we did not warn about the rise in prices.
Best regards, INEST HOMES CEO Inna Danilova
