What do you do if the economy goes into deflation?
How should ordinary people cope in a deflationary environment? I think you need to figure out the following questions: Should the first house be bought? Second, do you want to start a business? Third, should you go into debt?
First of all, say whether you want to buy a house. Can you see if you should buy a house? Because all kinds of policies are there, I hope to pull you to buy a house. Deposit rates are now falling in all banks. I looked at what the benchmark rate is for three years? 2.75%。
Speaking of houses, for places where the population of small cities is flowing out, it depends on whether local young people can go back when they are admitted to university. Young people who have not gone to college and work part-time work in other places cannot return after a few years. In a city like this, you should be cautious about buying a house, and prefer to rent a house. But for people with a little family in hand, the core stage of the house, but this time is an investment opportunity.
Because it is said above that deflation will cause asset depreciation, at this time, when the economy improves such as buying at low prices, these scarce assets bought will rise. So not only resist deflation, but also make money.
Do you want to start a business next? Say it. It is said above that the deposit interest rate is very low now, in fact, it is to encourage everyone to take out money to invest, to start a business, to come out to consume, and to encourage you to start a business. So do you want to start a business at this time? I think so, if you graduated from 985 or 211, it is better to enter the system, which is the best choice. Either enter a scientific research unit, or become a teacher, a doctor, or find a public institution, this is the best.
・If you really can't do it and want to start a business, can you? Society now advocates that young people should fight, what kind of entrepreneurial economic cycle? For example, what kind of small restaurant. Because now 11 million college students come out and want to find a job, it is very difficult. At this time, it is actually in the second half of this year, but the reverse recruitment is very simple, now I know that the success rate of entrepreneurship will be very low, but it does encourage young people to start businesses. To measure yourself, if you have nothing, choose to do a small business, with a small broad.
Let's talk about whether you want to go into debt. I believe that in times of deflation, unnecessary expenses should be minimized, especially some enjoyable expenses, and large liabilities should not be spent indiscriminately if they do not produce value for the future.
But what does falling prices mean in turn? It means that the purchasing power has increased, and this time is also a suitable time for consumption, especially for some necessities or high-quality products, and the value of appreciation can enjoy lower prices and higher cost performance when the economy improves in the future. Therefore, if you have more money, you can also appropriately increase this kind of consumer expenditure, which can not only meet the current demand, but also provide space for future value-added.
For example, Moutai wine, houses that just need a good location, some owners who open companies need some scarce resources of public resources, and so on. Therefore, in general, low-income people or white-collar workers, or friends who have just arrived at the threshold, the first thing to maintain is income stability during this period, and ensuring work and income in deflation is the most important, because the reduction of career or income will make life more difficult.
Therefore, ordinary people should strive to improve their professionalism and competitiveness, and try to avoid being laid off or ingenuity. So for friends with sufficient funds, does falling prices mean that purchasing power has increased? At this time, when some good quality assets are purchased, you can enjoy lower prices and cost performance.
Savvy investors generally fall in asset prices during deflationary times to resist depreciation, but not all assets depreciate. For example, there are also some things that will appreciate, such as gold foreign exchange, the scarce resources just mentioned. Therefore, according to their risk appetite and capital situation, ordinary people can wisely choose some investment varieties with anti-depreciation ability or value-added potential to protect and increase their wealth level.
In short, in the case of deflation, the rule of survival of ordinary people is to maintain stable income, consume appropriately, make smart investments to resist depreciation, and carry out reasonable debt planning.
But what I say is easier said than done, because these specific investments test professionalism and experience. If you need to consult this aspect, you can find me, Douyin search Dawei Wealth Management, enter the home page to find me.
