Friday, January 24, 2020

What to Do when Deflation Hits

The European Central Bank decided to continue buying financial assets to stimulate the economy that is in danger of falling into a Japanese style deflationary spiral. The pumping of liquidity into the markets has increased the stock exchange values some 25% in 2019 and 2020 appears to be similar. Can deflation be warded off? If not, when it will start? What to do to defend my savings?

Which Japanese player has survived and prospered in these last twenty years of deflation?

Somebody advised leveraged long real estate. Another said diversify internationally. Any ideas...?

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