Stagflation is coming, and everyone's performance is that they dare not spend money, are unwilling to spend money, and try not to spend the money they can. Therefore, economic mobility is very poor. Just like a river, if it stops flowing, it will enter a vicious circle. No one bought anything, enterprises were short of orders, closed down, workers were laid off, and the economy continued to decline.

First of all, stagflation can be matched by investing in gold, which has the function of preserving value. Secondly, stagflation can be matched by investing in high-yield assets, such as funds and stocks. Finally, stagflation can be matched by investing in real estate and facade in first-tier cities. It is not recommended to invest in real estate in non-first-tier cities or economically underdeveloped areas.

Matters needing attention in stagflation

When stagflation occurs, we need to take measures to stimulate economic growth by increasing fiscal expenditure or reducing taxes, or to prevent market inflation by raising interest rates. Generally speaking, when stagflation occurs, the economy falls into a situation of low growth and high inflation, and relevant fiscal policies (water release and policy stimulus) are useless. At the same time, unemployment and inflation coexist in society.

With regard to economic stagflation, the current mainstream policy can be stimulated by Abenomics, and at the same time, it can be seen that some countries use infrastructure and real estate to stimulate economic growth again. Correspondingly, when stagflation occurs, there will be problems such as idleness, unemployment and difficulty in selling goods in society, so the government will also strengthen the market by issuing subsidies and increasing the supply of consumer vouchers.