What assets will best retain their value in the next few years?

What will be China’s most valuable core assets in the future?

Of course, everyone has their own opinion, and everyone has their own plans, but I personally feel that in the next few years in China, we should plan our wealth in stages:

Each of us wants to achieve financial freedom in the process of making money in our own lives. So, in the current society, it is not difficult to achieve financial freedom, but what is difficult is how to achieve financial freedom in the next three years. It is the most difficult to maintain or increase the value of your assets in five years.

Well, nowadays, the asset that many people choose to preserve or increase value is to buy a house. However, I personally think that in the next five years, real estate may plummet or China's property market will bubble.

We all know that nine out of ten bets on the stock market will result in losses. Indeed, so, how should we invest or manage our own money in the future?

I personally feel that according to the laws of national economic development, times are changing and development trends are changing. The traditional business model is destined to be replaced by a more advanced business model in the future. So, as ordinary people, how should we manage our own wealth so that it can achieve a value-added effect?

I personally think we should plan and manage our wealth in this way. First of all, if we have spare money on hand that will not be used within two years, we can use it to buy currency funds.

To put it bluntly, it is fund fixed investment. What is fund fixed investment?

It’s actually very simple, you buy a fund every month. In this fund, 1,000 yuan is invested in monthly installments, and it can last for two, three, or 10 years.

Of course, this kind of financial management thinking mainly uses compound interest thinking.

In other words, saving 1,000 yuan every month may seem like a small amount, but over time, it will rapidly compound into a lot of interest. It won’t be used for three to five years. With a lot of money, you can buy real estate in first- and second-tier cities.

Of course, as ordinary people, there are only a handful of people out of 10 who have a lot of money.

Well, as ordinary people, if we have more spare money beyond our financial capabilities, then we can invest in real estate. However, our concept of investing in real estate is not to invest in real estate in fifth- and sixth-tier cities. , because it has no value. You can invest in real estate in first- and second-tier cities, but you have to make the most appropriate choice based on your own capital size. If you have a small amount of money that you won’t use in three to five years, you can use it to invest in convertible bonds and dividend indexes. The yield rate of financial products is higher than that of fixed investment funds, but compared with other financial management methods.

For example, investing in treasury bonds, speculating in gold, and investing in other financial and financial products, dividend index and convertible bonds have higher risk coefficients, but the safety is not much different from other financial and financial products. In the next ten years, if we have unused money, we can use it to buy Lushen 300 or SSE 500.

Why do you say that?

Because we all know that China’s stock market now has nearly 150 million registered investors. So many investors have poured into the Chinese stock market, and according to surveys by relevant financial institutions, the number of investors is increasing every year. A large number of people poured into the A-share market, which means that we all admit in our hearts that nine out of ten bets on the stock market will lose. But why are so many people pouring into the stock market? This just reveals to us that the stock market does have dividend.

So in China, if we want to buy the most core financial products, we should make plans for the financial products we buy. This does not mean that in the next five to 10 years, or even 20 years, We regard buying a house as part of the appreciation of our assets. In fact, this approach is wrong. Only based on the periodicity and regularity of the country's economic operation can we know where the country's development trend is? Where are the opportunities for the country to create wealth in the future? Only when we clearly understand the general trend of national development and have our own financial plan.

Then, our lives will be more free and unrestrained, and we will not be entangled in money.

So, on the road to chasing wealth, we follow the trend, whether in the stock market or in other industries, these four words are what I think are the most important ways to make money. Heavy.

Inflation, resistance to depreciation, which type of assets to preserve value is a first look

2020-02-04

In the next few years, what assets can best preserve their value? Looking at the essence through the phenomenon, when inflation occurs, this question points directly to the assets that can best resist depreciation.

1. When currency depreciates, what are the best assets to store value?

First, let’s clarify what exactly is an asset? Are houses, cars, and bills all assets? Someone used a vivid metaphor, assets are things that can put money in one's pocket.

Don’t speculate on housing, and save the cost of renting a house. The house is obviously a large asset, which can not only maintain trust in the economic strength in interpersonal relationships, but also provide a mortgage loan...

If you buy a car and use it for transportation to make some money for yourself, then the car becomes your asset.

Cash is even better put directly in your pocket...

What is the best asset when the currency depreciates? In fact, inflation is normal and currencies depreciate every year. You must build your own asset system to resist the depreciation of assets and avoid the loss of your own wealth.

Good assets can withstand currency depreciation and increase the value of everyone’s wealth. The assets that meet this requirement are these...

1. Real estate in good locations - urbanization With great development, the four first-tier cities and the second-tier cities with rapid economic development, real estate in good locations has become an excellent asset to resist currency depreciation. The growth rate of real estate is often much higher than the growth rate of other assets, which is enough to withstand the impact of currency depreciation.

In the future, the real estate prices in some cities with a net inflow of population will be more likely to increase.

2. High-quality securities - investments in securities assets, especially high-quality stocks, the company continues to create value and brings good investment returns. For long-term investment, the return rate of stock investment is consistent with the company's return on net assets, and the return on net assets of excellent companies can reach more than 20%, which can not only outperform inflation, but also continuously bring benefits.

Note: Many people favor gold and art, thinking that they can also preserve their value and resist inflation. However, gold and art cannot generate income or cash flow, and are not considered good assets to resist inflation. Historically, this is true, and gold's return rate cannot even outperform inflation.

The international gold price trend does not always rise unilaterally. If you lengthen its price curve, it actually develops upward in a wave shape. When you want to hold gold, you must pay attention to the periodicity. change.

2. Exploring assets that follow the law of time value

Inflation and currency depreciation. Due to the existence of time value, the same money will always be worth more in the first period than in the next period. .

For example, in daily life, a bag of flour a year ago was worth 100 yuan, but now 100 yuan can only buy half a bag of flour. A bag of flour a year ago is worth 200 yuan now. Significant currency devaluation.

What kind of assets do not depreciate and can play the role of time value?

1. High-quality equity - high-quality companies are striving for sustainable development. Time is value, constantly creating profits and bringing value. Excellent companies often stand out and represent the most advanced productivity in the world.

The increasing advancement of productivity technology will also drive rising inflation. As technology advances and income increases, the value of time plays an important role.

2. A good house in an ideal location - I owned a house a few years ago and now I am a rich man. House prices have risen sharply. The past decade or so has been the golden decade for China's real estate development, with the general increase rate being 3 to 4 times.

What will be the trend of housing prices in the future? Time is the judge. Even if house prices do not appreciate quickly, the chances of them falling are small. Owning your own house is a very good way to preserve value.

In summary, the global economy is slowing down, yields continue to decline, and currency depreciation will be a norm. Everyone must have their own long-term investment system, be patient, wait for the economic cycle to pick up, practice the necessary practices on the investment road, and master good ways to make money make money.

In the next few years, what assets will best retain their value? Preserving value means not depreciating and fighting inflation, but it is difficult to surpass the actual inflation level. In fact, as long as ordinary people can exceed the CPI, it will be good. Preservation of value can still be achieved through the following methods.

First, invest in real estate. Although many people are gnashing their teeth at China’s housing prices and saying every day that housing prices will plummet and halve within a year, in fact housing prices have been rising, even in some cities in the second half of last year. After falling month-on-month for several months, it also fell from its high point. It still rose simultaneously year-on-year throughout the year. House prices have always maintained and increased value in the past.

The hot stage of the real estate industry has indeed passed, and the possibility of continuing to rise like in the past is very low. On the one hand, under the general policy of "no housing speculation", regulation will continue to be tightened. The policy is not friendly to the property market; on the other hand, the housing price-to-income ratio in some cities is too high and purchasing power cannot support it. But this does not mean that housing prices will fall sharply, but that the increase will narrow, waiting for rising incomes to match it. It is expected that housing prices will still rise by more than 5% every year in the next few years. Of course, this is from an overall perspective, and in very few cities It will indeed fall.

Second, invest in gold. There is a saying that in troubled times, buy gold, which shows that gold has a good hedging effect. There is another saying: Currency is naturally gold, which shows that gold has the role of a currency equivalent.

From these two functions, we can see that gold has a good store of value. With the development of the economy, currency will always show a depreciation trend in the long run. As a currency equivalent, Gold, the relative price will rise. In recent years, the global economy has been relatively turbulent, black swan events have occurred frequently, and market risk aversion has repeatedly heated up, which has a significant boosting effect on gold. Therefore, gold can maintain its value in the medium and long term.

Third, investing in the stock market and the global economy will continue to develop in the long run. Human society is constantly progressing and economic activities are constantly increasing. Every recession in history is actually temporary. , then as an important carrier of the real economy, the stock market will rise in the long run.

Therefore, a country’s economic development results will eventually be reflected in the capital market. Investing in the stock market can bring benefits in the long term, but it should be noted that the stock market is a complex of countless listed companies. Rise does not mean that you can make money just by investing in the stock market. If you buy junk stocks and delisted stocks, you will also suffer heavy losses. Therefore, only by investing in high-quality companies that truly continue to grow, or directly investing in the stock market index for the long term, can you achieve value preservation and appreciation< /p>

I have been an investor myself for more than ten years, and I still have some experience with economic cycles and investment strategies.

Let me give you some personal suggestions:

1. Real estate.

China’s future real estate must be differentiated, and population determines housing prices!

In the context of the general environment where the population has peaked and aging is very serious, cities with a continuous net inflow of population, such as the first-tier and new first-tier cities, will have investment value, which can not only maintain value, but also appreciate.

But for cities in the third, fourth and fifth tiers, where there is a net outflow of population, there is no need to invest, because it will only fluctuate, correct, or even depreciate.

2. Stocks.

China's stock market will become the "golden cycle field" that will take over real estate in the next 10-20 years, so the probability of stock investment appreciation is very high, just like real estate in 1990 and 2000.

However, you must know how to distinguish, because the stock market is different from the real estate market. Looking at the mature financial market, it must be a survival of the fittest situation.

Therefore, only those high-quality, undervalued, industry-specific stocks have more investment value, while those in rising industries, and even those overvalued, inferior, and junk listed companies, should be avoided. .

Conclusion:

From 1987 to June 2019, the currency has depreciated by a cumulative 77.4%! 4.5% per year. Assuming an inflation rate of 4%, current cash will depreciate by 56% in the next 20 years. Highly indebted banks, insurance companies and real estate companies are the biggest beneficiaries.

Do you know how to deal with it? Buy core assets! !

History has repeatedly told us that in addition to investment, only investment can resist depreciation! Most deposits, even gold, cannot achieve the purpose of appreciation or even preservation of value!

The key to deciding what to invest in in the future is to retain its value the most. The more scarce something is, the more valuable it will be over time. Specifically, I think it will be more valuable in the future. The following types of assets will maintain their value relatively well. Houses in first- and second-tier cities.

Although my country’s property market has reached an inflection point and house prices cannot grow as fast as in the past, for those first- and second-tier cities with a relatively large net inflow of population, I think these cities will have a large net inflow of population in the next 5 to 10 years. There is still room for rising housing prices in cities. As long as the room for rising housing prices in these cities exceeds the level of price increases, then they can maintain their value. Second, gold and other precious metals.

Gold and other precious metals show completely different directions from economic development. Generally speaking, the economic development situation is relatively good, so the price of gold will be relatively low. On the contrary, if the global economic development is not very optimistic, then the price of gold will be relatively low. The price of gold will usher in an upward trend.

According to the current global economic development trend, the development of the global economy in the next few years is not very optimistic. In particular, the economic development of the United States may face some uncertainties. In this regard, the U.S. dollar may If the US dollar depreciates further, the price of gold will rise. Therefore, gold and other precious metals should have a certain value-preserving role in the next few years. Third, rural land.

With the continuous development of various undertakings in rural areas of our country, the living environment in rural areas has been greatly improved in all aspects. In the future, I believe that many people will be willing to buy houses in rural areas for vacation or retirement. Therefore, for those rural areas with convenient transportation and better environment, their land will definitely have room for appreciation. Fourth, collectibles.

As our country’s living standards continue to improve, more and more wealthy people are becoming rich. Once everyone’s income increases, everyone’s pursuit of quality of life will increase accordingly. In the future, there will be more and more millionaires in our country. In addition to pursuing basic food, drink, housing and transportation, these people will also pursue some artistic things, so there may be demand for those relatively scarce collectibles. will increase, then the prices of corresponding collectibles with relatively small stocks are likely to continue to rise, so these collectibles are only used if they have a certain degree of value preservation. Fifth, scarce mineral resources.

There are many mineral resources on the market today that are relatively scarce. The quantity of these resources will decrease a little every day, and they are non-renewable. In the future, the prices of scarce resources related to high-tech industries, such as rare earths, cobalt, zinc, nickel, etc., are likely to continue to rise, so they have a certain value preservation effect.

Of course, the ones we listed above are all tangible assets, that is, visible assets, but I think what can really maintain their value in the next few years is your own intangible assets, that is, your own abilities, because as long as you If a person's ability is strong enough, he can adapt to the changes of the times, and then be able to timely and accurately grasp market opportunities, thereby earning more wealth. This is the most valuable asset.

So when everyone has money, instead of buying some precious metals or real estate, it is better to spend more money to learn and improve yourself, by improving your abilities, expanding your horizons, and opening up your contacts, so that you can Make yourself invincible in the future.

1. Real estate industry

Real estate is a cyclical industry, and its prosperity is based on the quality of the macroeconomic situation. As long as the general trend of our country is upward, real estate in central cities can not only maintain its value , and the value can still appreciate; second- and third-tier cities will also develop, the population will increase, the overall demand will still grow, and the value will increase in the long term. As for small places such as fourth-tier cities, it is difficult to say whether they can maintain their value.

In many places, there is already a net outflow of population, and demand is decreasing. There is less and less space to use traditional infrastructure investment to boost housing prices, so the inertia of rising housing prices will also become smaller and smaller.

But remember this is only from the perspective of owner-occupancy. If it is real estate speculation and investment, then I think there is no need to think so much. Whether it is the first or second tier, or the third or fourth tier, housing prices are at a relatively high level. After the regulatory policies came out, the transaction volume in several major cities has declined sharply. A large amount of funds are invested in real estate, and the liquidity risk is very high.

2. Fixed-income investments

We all know that it is impossible for all the money in the investment portfolio to be invested in high-risk assets, and high-risk assets have both losses and profits. When you make money, fixed income can be the icing on the cake; when you lose money, fixed income has an obvious value-preserving effect and can even hedge against losses. As a prudent investor, fixed income income should at least cover the profit and loss fluctuations of risky assets. For example, the fixed income side has an annual income of 10,000 yuan, and the risk asset side has annual profits and losses of around 10,000 yuan. This basically achieves asset preservation.

It is difficult for anyone to determine the future situation. As a general rule, buy real estate and antiques in prosperous times, and buy gold, silver and other hard currencies in troubled times. At present, our country is in a rare prosperous stage in history. Therefore, real estate, stocks, antiques and other investment products are the main investment types to maintain value. If there are major uncertainties in the world, such as a large-scale war or a large-scale economic crisis in the world, you can buy gold to protect its value.

But no matter what time it is, don’t forget that the best investment is actually yourself. Strive to become a top talent in a certain industry is the most reliable way to settle down and obtain greater economic benefits.

Let me say the opposite.

Let’s talk about stocks first. Comrades, if nothing unexpected happens, this year’s IPO will be subject to a registration system. Simply put, it will be released as long as it meets the conditions... There is no approval mechanism. Delisting will be the norm in the future. Simply put, stocks can no longer be played as before, and retail investors basically have no There is no way to survive, so those who maintain the value of stocks can just go to sleep. This is a standard pitfall...

Then real estate

Not much else to say, but after the epidemic, housing prices will fall. In fact, The economy will be affected... To explain it in one sentence, the general environment is not good. I can't find any reason to explain why housing prices will hold up? Those who want to buy a house can just go to bed, and those who want to be a pick-up person can go and do whatever they want. If they can keep their jobs this year, they will be very happy. s

Artwork

... Well, I personally think it’s better for mortals like me not to touch it

Gold

This is possible, but the premise is that you have to make sure that what you buy is pure real gold. The kind that will rust after a few days will still fall apart.

US dollars

The idea is very beautiful, but the reality is very skinny. If you don’t believe it, ask how much each account can buy?

So, to sum up, I personally understand that it is better to stay still than to move. In the current situation, it is better to invest in the bank to stabilize your wealth. Let's do it when we get the chance

1. Precious metals, mainly gold.

2. Physical assets, mainly land and real estate.

Most of the major countries in the world today pursue low interest rate or even negative interest rate policies. In other words, economic growth depends largely on such monetary policy. An important consequence is that the currency issuance gates of various countries are opening wider and wider, but the speed of economic growth is far from keeping up. Government debt and national debt in various countries are growing rapidly. Once economic growth cannot support the growing debt, a crisis will explode.

This is also the modern version of the capitalist economic crisis taught in our textbooks - a virtual debt crisis. What are the consequences? Redistribution of wealth across society. There are only two ways to resolve the crisis: diluting claims and canceling claims. Both of these methods must be completed by issuing a large amount of local currency. Currency depreciation and inflation will accompany each other. Note that it is not just a few countries that have such prospects and expectations, but all major countries that pursue a market economy will find it difficult to escape, including our country.

At present, the global economy is generally in a downturn and will remain pessimistic in the next few years.

We cannot rule out the possibility of crises erupting in major countries in the world one after another - in fact, the cyclical nature of capitalist economic crises discussed by Marx still exists, but it is just lengthened with the progress of society and science and technology.

If a country's debt crisis breaks out and its currency depreciates, then the currency assets held will inevitably suffer losses of the same proportion. Physical assets have a certain value-preserving function, among which land and real estate are the most recognized. As for resources, mines and other assets, it is difficult for ordinary people to get their hands on them.

With its natural currency properties, precious metals, especially gold, are independent of the banknotes of various countries and have recognized functions of hedging and preserving value. It is also the most popular asset in times of crisis, whether it is a country, business or individual.

As for artworks, antiques, etc., they also have a certain value-preserving function. But there is an old saying: Antiques in prosperous times are gold in troubled times. It depends on the stability of society.

In the next few years, there are nothing more than three things that will retain their value the most: first, real estate; second, gold; and third, stocks. Why are these three assets the most valuable in the next few years? Because it is difficult to see housing prices drop significantly in China. Antiques in prosperous times and gold in troubled times, gold has been the king of safe havens since ancient times. Buying gold during inflationary times will provide opportunities for value preservation and appreciation in the future. The next step is stocks. Everyone knows that in the stock market, not everyone can make money, but if you know how to buy stocks, your profits in the next few years will be higher than the previous two. Only the right investments will preserve their value in the coming years.

1. Real estate.

Although real estate regulation continues in 2016, the real estate market has ushered in a turning point. The golden cycle of real estate for more than 20 years has passed. At this time, real estate has returned to the residential attribute, and the investment attribute has gradually been diluted. Housing prices have also ushered in a stage of steady correction. However, although real estate prices no longer surge and housing prices have entered a stable period, national housing prices still rose slowly in 2018. In 2019, the trend of housing prices in 100 cities was generally stable. It can be said that we need to see The risk of a sharp decline in housing prices is very low, and houses will still be a valuable asset in the next few years.

Now it is easier to get a loan from a bank or other sources to get a house. House prices in core areas of first- and second-tier places are still appreciating. Generally speaking, house prices in 2020 are expected to be further stable. House prices in core areas will still exist. The market continues to appreciate.

2. Gold.

In 2019, the price of gold experienced a sharp rise, and last year it broke through a six-year high and embarked on a mid- to long-term upward trend. As the world enters the loose monetary stage, the safe-haven properties of gold are brought into play, and risky assets are undergoing adjustments at high levels. At this time, funds are more inclined to buy gold as a safe haven. In 2019, gold broke the previous adjustment trend, and this year is already in the process of reconfirming the previous rise.

The most important thing is that gold has anti-inflation properties. Under the influence of this environment in the next few years, gold will still be able to maintain its value.

3. Stocks.

In 2019, A-shares entered a bottoming stage from the previous decline. The stock market got rid of the bear market and hovered in the low valuation area. Although the market still has investment risks in the short term, the core assets have already Received buy-in from institutions and foreign capital. Since last year, foreign capital has invested more than one trillion yuan in the stock market, and the capital positions of various institutions have reached more than 90%, which shows that big funds are optimistic about the stock market in the next few years.

While real estate gold is a mid- to long-term investment product, stocks are more likely to obtain more investment returns once a bull market hits than the two assets, especially The stock market is already in line with international standards. As more and more funds begin to deploy in the A-share market, high-quality stocks will usher in a longer bull market. Investing in stocks at this time can be said to be an opportunity to maintain and increase the value of assets in the next few years.

Therefore, ordinary people who want to invest in real estate, gold and stocks can consider investing in real estate, gold and stocks in the next few years. They can choose to invest in different assets according to their own risk tolerance, and do not blindly follow the trend of investment. After all, real estate not only has There are also investment attributes and residential attributes, which have physical properties and the existing risks are low. Gold only requires a medium and long-term investment process and cannot obtain higher returns in the short term.

Although stocks can provide opportunities for short-term gains, the risks are relatively high, and professional financial management knowledge is required to purchase them.