Inflation is an economic phenomenon that is closely related to everyone, because with inflation, we can intuitively feel the rise of prices. Even if most people don't understand economics, they know that "money is becoming less and less valuable".
Inflation refers to the phenomenon that under the condition of currency circulation, because the supply of money exceeds demand, the currency depreciates and the price rises continuously and generally for a period of time. Inflation can be divided into mild inflation, severe inflation and hyperinflation. Different types of inflation have different economic effects, and the same thing is that they will all bring about price increases and currency depreciation!
What are the benefits of inflation for ordinary people?
Although moderate inflation is beneficial to economic development, because at this stage, various economic indicators are generally improving and commodity prices are rising, business owners have the impulse to expand reproduction, and it is also possible to raise the wages of ordinary workers. The country also has the opportunity to expand investment through debt, and a large number of infrastructure projects have been launched to provide more employment opportunities for ordinary people. Ordinary people have job opportunities, their income has also increased, and they are more willing to spend, thus stimulating the prosperity of the consumer market and further enhancing economic vitality.
However, in essence, this is a kind of inflation. Prices continue to rise, the purchasing power of paper money declines, and asset depreciation is inevitable, which has no direct benefit to the inflation of ordinary people.
How to deal with it?
In the face of inflation, ordinary people should establish a correct concept of financial management and realize the appreciation of wealth and assets as much as possible to cope with the impact of inflation and depreciation of assets. The way to preserve and increase the value of assets also needs to be chosen according to its own actual situation.
First of all, we should look at how big the inflation rate is, that is, how fast the currency depreciates every year, so as to deal with it purposefully. Generally speaking, CPI (Consumer Price Index) measures the degree of price increase, but it contains a basket of goods that does not include the rise of house prices, so the actual inflation rate is higher than CPI index.
Since inflation is caused by currency overshoot, the growth rate of broad money in that year, which exceeds the growth rate of actual national wealth, naturally reflects the degree of currency overshoot, that is, the real inflation rate. Coincidentally, the growth rate of broad money is the growth rate of M2, and the growth rate of national wealth is the growth rate of GDP. Subtracting the two is the real inflation rate.
At one time, the domestic M2 growth rate reached more than 20%, but in recent years it has dropped to below 10%. In this way, the actual inflation rate in China in 2065,438+07 and 2065,438+06 was around 6%. It is actually quite difficult to achieve such a return on investment. At present, it is difficult for most wealth management products and money funds of banks to achieve an annualized rate of return of 6%.
When it comes to fighting inflation, most people think of real estate first. After all, house prices have been one of the best assets in the past ten years. The annualized rate of return on real estate investment in big cities, especially in central cities such as Beijing and Shanghai, is above 12%, which is a good defense against inflation.
However, with the macro-control of the real estate market by the relevant state departments, the investment value and return rate of real estate prices are shrinking.
There is a saying in real estate investment: look at finance in the short term, land in the medium term and population in the long term. From the macro-control point of view, the measures of restricting purchases and loans are still being implemented, and it is difficult for the real estate market to reproduce the hot scene. 20 18, the land auction market in several cities was cold, and a lot of land was auctioned, suggesting that the real estate market entered a shift period. Generally speaking, investing in real estate is not a good choice at present.
After excluding real estate investment, ordinary people should actively hold other assets to fight inflation. The root of inflation lies in the excessive currency. The decline in the purchasing power of paper money, on the other hand, is the rise in the prices of scarce resources and assets. What may be scarce in the future are the equity of high-quality listed companies, commodities in great demand, and hard currencies such as US dollars and gold.
As far as investing in the stock market is concerned, you can choose high-quality leading stocks that meet future development expectations and hold them for a long time, which is also an important choice to outperform inflation.
From the perspective of 10 years or more, holding the equity of high-quality companies can obviously outperform the inflation rate, and the yield is higher than any bank wealth management products and bonds.
Considering that the China stock market fluctuates too much, ordinary people don't have the ability of "timing", so it is suggested that ordinary people invest in index funds. Passive index funds can reduce risks by diversifying risks, and once the bull market comes down, it may double the wealth.
Last year, under the background of stock market downturn and deleveraging, reducing stock allocation and increasing bond allocation became a rational choice. Bond funds also performed well. On Baidu's Xiaoman Wealth Management APP, the yield of bond funds of Dacheng, Nanfang Fengyuan and Yifangda reached 10% in the past year. Even if the fund management fee is deducted, it can outperform inflation and realize the preservation and appreciation. Similarly, there are many issuers and frequent debt defaults, so we should pay attention to the risk of lightning when investing in corporate bonds.
No matter what kind of financial management method, we must first ensure the safety of the principal. At present, in the wealth management market, fixed income products are mainly creditor's rights, including bank wealth management products, brokerage income coupons, P2P wealth management and products sold by Internet wealth management platforms, all of which are creditor's rights assets.
The bank's smart deposit products are similar to money funds, with strong liquidity and stable yield. Innovative deposits, on the basis of capital preservation, invest in derivatives to obtain higher returns. These new products developed by banks can resist inflation, although they can't run away from inflation. Brokerage income voucher products belong to guaranteed financial management, starting from 50 thousand yuan, the yield can reach more than 6%.
The diversity of wealth management products and the specialized operation of investment institutions have reduced most investment risks. Ordinary people should actively embrace risks and let wealth add value to you while sleeping.
In addition, it is a more realistic choice to keep learning, keep learning, enhance professional competitiveness, enhance personal ability and get a promotion and salary increase.