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To Win Inflation And Avoid Shrinking Wealth, I Have A Unique Skill.

2011/4/25 10:22:00 40

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Anti Inflation Wealth Shrinking Asset Prices Spiral Upward

How to avoid negative interest rates?

Wealth shrank

Attracted much attention.

(information photo)

After raising interest rates this month, the one-year deposit interest rate rose to 3.25%, but in March CPI rose 5.4%.

The market forecast is likely to reach a new high in CPI.

Under the condition of obvious negative interest rates, how to avoid the shrinking of wealth and seek ways to maintain and increase the value of assets has become a matter of concern to the public.

A few days ago, Feng Bo, senior investment manager of Standard Chartered Bank's wealth management department, said that it is difficult to eliminate the risk of asset depreciation because of the simple investment in financial products. It is very necessary to invest in stocks and commodities and hold them for a long time, so as to get potential gains that can outperform inflation.

Stocks and commodities can resist inflation.

Feng Bo said that historical experience shows that stocks are in the long run.

Anti inflation

The best investment choice.

A study by Jeremy Siegel, a professor of finance at Walton business school, found that if someone bought shares and held them for $1 in 1802, they would appreciate more than 70 times by the end of 2007.

If the 1 dollars were originally used to buy bonds or bills, the value of these two investments would be 1530 dollars and 295 dollars respectively at the end of 2007.

If the 1 US dollars are held in cash, the ultimate purchasing power is only 5.5 cents due to inflation.

Publicly available data show that global inflation has reached 53% over the past 10 years.

During the period, the price of gold has increased by four times, the price of oil has increased 2.6 times, and the world stock has increased 1.5 times, among which the emerging market stock has performed far better than the developed market stock.

If the perspective is extended to 20 years, emerging market stocks will become the biggest winners.

In the meantime, the MSCI emerging market index has more than doubled, while the price of gold and crude oil has more than doubled.

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Long term trading is better than frequent trading.

There is a view that in the period of economic expansion, excessive supply of money will promote.

Asset prices spiral upward

To increase corporate profits, thereby further pushing up stock prices.

Feng Bo said liquidity driven asset prices tend to be accompanied by higher volatility in the financial markets.

Take the A share market as an example. In the past 10 years, three years have performed best in the global stock market, and four years have been the worst performing stock market in the world.

Therefore, the bull market in the mainland market is frequent, trying to buy low and sell high may lead to high risk.

"If an investor holds the same stock portfolio as the Shanghai Composite Index, the loss of the 10 best performing trading days in the past 10 years will lead to investment losses in the more than 2500 trading days.

On the contrary, if the stock portfolio is held during the period, the investor will double the principal.

Therefore, it is a feasible investment strategy to buy stocks, commodities and hold them at the initial stage of economic growth for investors seeking long-term and stable value-added of wealth.

News

ICBC pushes credit cards

Recently, ICBC officially launched a new credit card product, "credit card", which is a consumer installment product. It uses credit card as the medium, implements the benchmark interest rate, can not be used for overdraft cash withdrawal and overdraft pfer, and can only be used for installment consumption directly. It is a special credit card specially designed for payment by industrial and Commercial Bank of China (601398).

It is reported that the cardholder uses the credit card to purchase more than 600 yuan of merchandise in the designated merchant, and proceeds directly to the merchant's credit card for payment by installments.

The number of instalments can be chosen by customers, one month for one period, flexible stages, and can be selected independently in the 24 period according to need, up to 36 periods.

The market positioning of the card is significantly different from the existing credit card installment business, with a stable cash flow group, with a maximum amount of not more than 200 thousand yuan.