Real estate, yes, real estate prices are going through the roof right now. Why people realize what printing money out of thin air does to the economy. So they look for investments, considered strong stores of value. Real estate is by far the best store of value we've had until now.
Here's something most people don't realize, the value of your home doesn't actually go up. It's the purchasing power of the currency that's going down. So you need more cash to buy the same thing. Zillow, the largest real estate marketplace in the SA saw the price of the average home in the country double in the last five years.
And the rhythm of price increase is only picking up. The average price increased by eighteen percent in the last twelve months. And their data indicates a future increase of thirteen million moving forward. And if you take into account the increase in row material prices, we expect the price for new apartments to be considerably higher than they are now.
At this rate, saving up to buy a house is one of the most expensive things you can do. Number two, stocks, have you noticed how the stock market is doing all time high? So the government print money, right? It deploys it into the economy.
People buy products and services, and that money ends up in the hands of the top twenty percent of the population. the same way the stimulus check double Jeff Bezos as wealth. You all spend buying stuff from Amazon because the rich understand the dilution of capital. They don't care about saving money under the mattress.
They purchase stocks or preferably index funds, like the SP five hundred. All this new capital flooded the stock market, shooting everything to the moon. Every dollar put in the SP five hundred doubled in value over the last sixteen months. Over fifty percent of the population has no investable assets.
No comments:
Post a Comment