The Property Podcast TPP598: Is property the ultimate investment for our new economic era?
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Aug 29, 2024 Discover how the rise in interest rates has reshaped the investment landscape. With inflation and financial volatility on the rise, what should investors focus on? Delve into asset classes like stocks, gold, bonds, and Bitcoin, and find out how property stands up against these options. Explore both the pros, such as stable income, and cons involving liquidity and political risks of property investment. Learn key strategies for navigating this new economic era while emphasizing diversification to weather uncertain times.
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A New Financial Era
- The economic world is vastly different now than it was 5-10 years ago.
- Adapting to this new financial era as an investor is crucial for thriving.
Characteristics of the New Era
- Four characteristics define this new era: higher interest rates, volatile inflation, high debt levels, and negative real interest rates.
- These conditions have existed before, but not recently, so understanding historical performance is key.
Ideal Investment Characteristics
- Seek assets with five key traits: purchasable with debt, inflation-resistant, supply-constrained, real-world utility, and inflation-linked income.
- Assess assets against these characteristics to thrive in the new financial era.