How To Hedge Againist Inflation
The economic news goes from bad to worse and if you are a chocolate lover, the news that Thornton’s is closing 120 shops will have you reaching for the ‘panic buy’ button. This news comes after yesterday’s announcement that Jane Norman, the fashion retailer, is going into administration which itself was hot on the heels of news of Habitat’s woes. For the retail sector it’s not a trickle, it’s an avalanche at the moment.
The consumer is changing and adapting to the new economic climate. A quick glance at the Office for National Statistics website this morning illustrates my point. We’re saving more in general and throughout 2009 & 2010 UK households saved more. This shouldn’t come as a surprise, as saving and spending are closely allied to the fortunes of the economy, the property market and the level of inflation. Saving is perceived to be a hedge against inflation, although in reality the purchasing power of cash in the bank is eroded as the rates currently being paid to savers are less than the current rate of UK inflation as measured by both the CPI and RPI.
Savvy iHow To Hedge Againist Inflation have recognised that cash accounts do not hedge against inflation. Only a return that is in excess of the Retail Prices Index gives you a real return and this largely explains the growth in How To Hedge Againist Inflation over the past 12 months. Investors have taken advantage of weak prices and strong rental returns while repossessed properties with high yields are becoming the inflation hedge of choice for many.
If you would like to find out more about how to invest in distressed property and high yielding HMO and Student properties, we will be in London this Thu (30th June) for an evening seminar.
Alternatively, we will be running a series of meetings throughout the day if you wish to have a personal one-on-one discussion. Finally we will be releasing details on the evening of two London distressed developments available from a bank, both with strong yields of between 6.5 and 7% and with a discount of 20% to current market value.
Article Courtesy of Dominic Farrell
