Brother. It’s fate that you met me!

The collapse of housing prices will cause the wealth of a large number of middle class people to shrink, or even become negative wealth. Consumption will be sluggish, and society will enter a long-term deflation stage. Look at Japan. Housing prices have been falling for 20 years. The current housing prices are less than 30% of the peak, and some are even less than 20%. However, housing prices have not bottomed out yet. If it is a long-term investment, do not buy a house now, as it will be stuck for a lifetime. Real estate is somewhat similar to the stock market, but the scale of the real estate market and the bull market cycle are much longer. The average bull market lasts about 17 years. Hong Kong has the longest record of 23 years. However, since the bubble burst in 1998, it has not yet Return to the previous high price. Real estate has a bull market, but once it enters a bear market, the cycle will be very long. If the population ages and there are not enough younger generations to take over, real estate will enter a long-term bear market. Japan is a good example. Many people think that Japanese houses have investment value, and the rental returns are higher than bank interest rates. In the year after 2000, they made a big move to buy houses, but the results were disastrous. The annual rental return is not enough to offset the decline in house prices. The reason why China's housing prices have not collapsed is because the real estate market is still in the middle and late stages of the bull market. Prices will not fall until the bull market ends. Regulation of real estate around the world has failed. Regulation can only change the short-term trend, but not the long-term trend. Similarly, once real estate enters a bear market, nothing can be done to save it. Even if it is as powerful as the United States, it printed so much money in 2008, cut taxes, and cut interest rates, but it still cannot stop the decline in housing prices. So far, 5 million houses have been unable to repay. was withdrawn. Japan is even worse. It has been falling for 20 years and is still falling. Counting from China’s housing reform in 1998, based on the 18-year bull market, the bull market will not end until 2015, and 2015 happens to be the first year that China’s population enters negative growth. I don’t know if it is God’s will or a coincidence.

Investment gives you a quote from Buffett: "If you didn't attend a person's wedding, then please don't attend his funeral!"

To avoid inflation, the best way is to buy index funds. Judging from global historical experience, it can outperform inflation in the long term!