WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING MARKET
Stock-Markets / Inflation Apr 24, 2022 - 02:45 PM GMTThis is why one has NO CHOICE but to be invested in price volatile assets such as stocks and housing which whilst yes will move up and down in value from tim to time like a yo yo nevertheless over he long-run will be leveraged to rampant government and central bank money printing inflation so we have NO CHOICE BUT TO BE INVESTED IN SUCH ASSETS! NO CHOICE WHATSOEVER FOR THE ALTERNATIVE IS CERTAIN DESTRUCTION OF ONES HARD EARNED WEALTH which is why the largest asset class I have held for near 10 years now is bricks and mortar UK housing regardless of what the price indices do from month to month, year to year, or the clowns proclaim about imminent deflationary crashes. There is NO CHOICE BUT TO BE HOLD ASSETS THAT ARE LEVERAGED TO INFLATION AS THE ALTERNATIVE IS ONE WILL LOSE THE VALUE OF ALL OF ONES HARD EARNED SAVINGS! Which is why whenever I am asked if now is a good time to buy property I tend to remind those asking that house prices are leveraged to inflation so regardless of the tripe in the clueless mainstream press of how UK housing is unaffordable, however inflation ensures that the overall trend trajectory remains upwards for the fundamental fact that unlike fiat currency houses cannot be printed and thus house prices have confounded the clownomics in the mainstream press by soaring into the stratosphere.
Basically housing is one asset classes not to trade in and out of like one tends to do with stocks but rather to the accumulate whenever one observes deviations from the highs for the greater the deviation from the high the greater the buying opportunity presented. My focus be it in housing or good stocks is ALWAYS to BUY the deviation from the highs, whilst the focus of most would be investors are the possible draw downs as if one can buy the exact bottom, good look with that as you will only ever see the bottom in your rear view mirror, hence why most investors miss the greatest bull markets in history as they miss the bottom and then wait for the last major low to repeat and thus end up buying nothing, or if they do buy soon tend to sell on the few percent blip higher on FEAR that even lower prices are just ahead . which means investing is largely psychological, for some reason most people are wholly focused on DRAWDOWNS hence why they tend to NOT buy when prices are cheap and instead FOMO into assets when expensive, which is the exact opposite of what one should do!
BUY THE DEVIATION FROM THE HIGHS,. DRAWDOWNS ARE NORMAL, YOU WILL NEVER BUY THE BOTTOM OR SELL THE TOP, ATTEMPTING TO DO SO MEANS YOU WILL HOLD NOTHING WORTH HOLDING!
This article in an excerpt from my most recent analysis extensive analysis which is on UK House Prices Three Trend Forecast 2022 to 2025, where I pealed away multiple layers of the UK housing market of to arrive at a high probability of trend forecast.
UK House Prices Trend Forecast 2022 to 2025
THE INFLATION MEGA-TREND
WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING
High Inflation Forecast for Whole of this Decade Due to Rampant Money Printing
Fed Inflation Strategy Revealed
Russian Sanctions Stagflation Driver
RECESSION RISKS 2023
UK Debt Inflation Smoking Gun
Britains' Hyper Housing Market
UK Population Growth Forecast 2010 to 2030
UK House Building and Population Growth Analysis
UK Over Crowding Ratio
Overcrowding Implications for UK House Prices
UK Housing Market Affordability
UK House Prices Real Terms Sustainable Trend
UK House Prices Relative to GDP Growth
UK House Prices Momentum Forecast
UK House Prices and the Inflation Mega-trend
Lets Get Jiggy With UK INTEREST RATES
Is the US Yield Curve Inversion Broken?
UK house Prices and Yield Curve Inversions
Interest Rates How High WIll they Go?
Work From Home Inflationary BOOM?
Formulating a UK House Prices Forecast
UK House Prices 2022 to 2025 Trend Forecast Conclusion
Peering into the Mists of TIme
Risks to the Forecasts
US House Prices Trend Forecast 2022-2024
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By Nadeem Walayat
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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk
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