The turmoil on stock exchanges, the EURO crisis and its' "junk bonds", the USA debt ceiling panic followed by the lower Long Term Debt Rating to "AA+" by Standard & Poor, has left many investors worrying where to invest their money.
The simple fact is that there is too much money available looking for a secure home. The word "secure" is of prime importance and this also explains why the price of gold has reached sky-high levels in a short period of time. Investors, particularly pensioners, are worried by the sinking stock market prices.
The parity of the US dollar has also faded and is at present no longer the safe haven it was in countries where inflation is rife. Many tourists there have been offered exchange rates to sell US dollars or other stable currencies which are much more favorable than the official rates available.
Of course there are still the old and well tried methods, but they do not suit every investor with money. To buy real estate, a flat or house, to live in or to rent out, with the help of a loan, is a classic example of how to protect personal net worth. In present circumstances property prices can only rise in the short term.
The real problem Governments must solve is: "How can the pensions, State or Private, be garanteed in the short term if inflation rises?" This is what politicians everywhere must explain !!!
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