Everywhere we hear inflation is going to be the next big thing. So far it has not. But my belief is it is coming soon. My way of thinking is that it will not hit as long as unemployment does not go down. Once unemployment goes down then, next thing which will happen is people will have more money to spend and will be willing to pay more. Also the extra money that government has put into the market will also start flowing. So with lot of money in the market flowing ultimately prices of the goods will grow.
With that said the prices of real estate will also grow and dollar will devalue. So the best place to invest during inflation is in the products that are existing like land, gold etc.
You can see the similar inflation problem in developing countries like India.
What is your view about investing during inflation?
Showing posts with label Investment. Show all posts
Showing posts with label Investment. Show all posts
Wednesday, May 19, 2010
Friday, May 14, 2010
where to invest Shares, Gold or Land
My view on investment:
During these hard times, when worldwide economy is going up and down, the safest way it to invest in basics. With basics I mean housing. If you already have the house that you want for yourself and have extra money to invest, go for extra land or house or precious metals.
One more trend I have seen and would like to try myself " Invest at low rate and sell at high rate". If you have the capacity to hold for some time look for stocks that are below it's value. Here is what I would like to do. I would invest in companies that would give good dividends. Even if their price go down I would get some money in dividend till the prices go up and I sell them.
My thinking is that US dollar is going to be devalued very soon, Inflation is going to come as soon as the unemployment starts going down. As employment goes up people will start buying and people with extra money will buy and invest more which will bring up the inflation. Goverment may increase the interest rates to keep low inflation but once it hits US dollar will devalue.
Once US dollar devalues housing price will rise and so will the precious metals.
During these hard times, when worldwide economy is going up and down, the safest way it to invest in basics. With basics I mean housing. If you already have the house that you want for yourself and have extra money to invest, go for extra land or house or precious metals.
One more trend I have seen and would like to try myself " Invest at low rate and sell at high rate". If you have the capacity to hold for some time look for stocks that are below it's value. Here is what I would like to do. I would invest in companies that would give good dividends. Even if their price go down I would get some money in dividend till the prices go up and I sell them.
My thinking is that US dollar is going to be devalued very soon, Inflation is going to come as soon as the unemployment starts going down. As employment goes up people will start buying and people with extra money will buy and invest more which will bring up the inflation. Goverment may increase the interest rates to keep low inflation but once it hits US dollar will devalue.
Once US dollar devalues housing price will rise and so will the precious metals.
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