Soon or later hyper inflation

MNSL answered 8 months ago …

I do not think any currency will appreciate rapidly in the next 18 months. Commodities and other asset prices including housing prices will go down further until world economy improves. Only simple business and next rotating sectors will have above average profit and growth in the next 18 months and next 05 years.

We will have permanent shift in the world economy.

In some countries there are some signs of hyper inflation. Their currency value has gone down drastically. Even with record drop of oil prices their oil prices is very high due to depreciation of their currency. So their inflation has not gone down drastically. As a result of this their purchasing power has gone down. They spend less on luxury items. They buy less tyres, cars, houses, leather products, clothes, retail items, jewellery, use less oil, travel less etc. Sales volumes have come down dramatically in above areas.

With rising unemployment, less production, less tourists and with less business activity even commercial and housing rent market will collapse sooner than later in some countries. Already some top real estate investors have identified this trend in advance.

Surprising demand for some products such as eggs has gone up in some countries during this long recession. As a result of this egg prices have not come down despite fall in feed prices and grains. In fact some industries are benefiting even during these recession.

During hyperinflation and deflation period assets that have long been overvalued due to excess credit circulating in the financial system, such as houses, automobiles, electronics will plummet in value.

If we see world economy we have combination of signs in depression, hyperinflation, inflation and stagflation now. It is time to invest in next rotating sectors, simple business and companies that going to make profit and growth in the next financial year and beyond.

Only in these areas will have sustainable employment in the long run. In some areas we will see boom and bust in the next decade specially in hot sectors.