Is cash still king or an asset?Explain the answer in detail to understand that early benefits are more
Last year, there was a time when many economic experts shouted at people that now that the economy is in recession and assets are depreciating, people are waiting to see how things will change.
So, what exactly is an asset?
To put it simply, an asset is something that you spend money on something that is likely to get more money in the future, that is, an asset is something that will put money in your pocket in the future. That's why the rich always tend to turn their money into assets instead of honestly putting a lot of money away.
In fact, due to the impact of the global recession last year, assets around the world are continuing, such as property prices, car prices, in short, all kinds of assets are in the world, so there is a saying in the investment community"Cash is king"。"The family has a lot of money, and the bag is safe"。
In"Cash is king"Under the guidance of ideas, a large number of second-hand housing listings have emerged in various places, and people are worried that assets will continue to depreciate, and they have converted assets into cash.
However, as everyone knows, our economic development is cyclical, and when the economy declines to a certain extent, the bank will inevitably use policies to make appropriate adjustments, and it is impossible for assets to continue to fall.
So, we can see that over the past year, bank deposit rates have started to fall consistently, and it is clear that people saving money to fight inflation are no longer working. In this case, many people can only withdraw money from the bank for consumption or investment, and find a way"Let money make money"。
In addition, in the past two years, the central bank has released a lot of money, and when there is more and more money in the market, of course, it will eventually flow into households and other places. But the problem now is that it is difficult to make money in all walks of life, people dare not invest, and if they lose money, they can only hold the money firmly in their hands, which has triggered a certain amount"Asset shortage"Issue. In short, there is no place for printing money in society.
The reason for this phenomenon is mainly that the money from printing money flows into the market, and it needs a period of economic self-adjustment, that is, we don't know when the funds will eventually flow into the assets, and we don't know when the assets will begin to appreciate, so we think that when the assets are low, so that when the economy recovers, the assets will continue to appreciate, and our own wealth will also be because of this"Expansion"。Assets will also be as such"Expansion"。
Well, at this stage, we should continue to assert"Cash is king", or turn to assert"Assets are king"What about it?
In this regard, some experts pointed out that most ordinary people, in fact, it is difficult to ** how much assets will depreciate under the influence of the global economy this time, so they want to grasp the best"** "The timing is very difficult.
Now, with the recovery of our economy, the stage of asset depreciation has ended. If ordinary people don't start investing next year, they are likely to miss the best time for assets to start appreciating. Until then, people will still hold on"Cash is king"But due to asset appreciation, inflation and wealth will evaporate.
From this, we can conclude that in good economic times, it is certainly more practical to buy goods than to have money in hand. Because money is just a piece of paper, it can't have any practical function, let alone eat. Therefore, many people who understand the economy generally do not leave a lot of money, but leave a lot of assets and put money on useful things, so that the risk they face will be lower.
In fact, as long as we look closely, we will find that the process of economic development is the process of continuous depreciation of the currency. If you think about it, 100 years ago, 100 20 years ago, and 100 now, the purchasing power is very different. And once you are aware of the problem that currencies are constantly depreciating, it is recommended that you prepare in advance and convert currencies into assets appropriately!