Forecasting is difficult, especially when it comes to the future. This year, however, looking ahead to 2022 may be particularly difficult. With inflation, a phenomenon has suddenly become a reality for investors, which for many years only economists, and only very theoretically, have dealt with. This figure of the inflation target of “close to but below 2 percent” issued by the ECB has been the benchmark for years. In Germany we have now reached inflation of over four percent - the highest level in 28 years. Not all find this worrying, speak of catch-up or even base effects, and see inflation plummeting again in a few months. But the other group warnsthat such a temporary phenomenon could then very quickly turn into a permanent establishment after all, especially if trade unions - because of inflation - now fight for higher wages. The specter of the wage-price spiral is looming.
Editor in business, responsible for the financial market.
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For investors, inflation creates additional stress.
The investment pressure has been immense for years.
Where else can you find a good investment that promises a profitable return?
A lot depends on it, because the subject of old-age provision is becoming more and more explosive.
If the money in accounts is not only not properly invested, but is also being reduced by inflation, then things will gradually get tricky.
Opportunities in 2022: Concrete gold, gold and sustainability
In the coming weeks we want to offer some orientation in our “Opportunities 2022” series. It should be about ideas that might make investment decisions a little easier. Of course, one of the articles will be about real estate. For a long time, concrete gold was considered the only real alternative in view of the low interest rates. But trouble is brewing. In a study by the major Swiss bank UBS, Frankfurt rose to first place: in the global ranking of risks for real estate bubbles. This puts the Main metropolis in front of cities like Toronto, Hong Kong or Munich. All of this does not have to mean that the bubble will soon burst with a big bang. But it shows what movement is prevailing in the real estate markets and that it is no longer just the mega-citieswhere high property prices can become a real problem.
Gold will also play a role in our series.
It has been enjoying increasing popularity for years.
Not least because you can touch it and gold is considered to have a very stable value.
In the course of the past year, however, prices have soared again and again that investors asked themselves: “Is it still worth it?” When it comes to investing in gold, it is often forgotten that money can only be made with gold if you can it sells.
With stocks, investors can speculate on dividends, with real estate, expect rental income.
Those who live in their own property save the rent.
But gold does not bring in anything over the duration of the possession.
For those who still benefit from the gold investment, we want to clarify that in one of the next series articles.Keywords: inflation, opportunities, series, way, benchmark, investors, investment pressure, forecasting, phenomenon, reality, systems, opinions, investment, orientation, ideas