Is deflation a given now?
Lets say that population increase is the source of appreciation. Will a decrease then cause deflation? Inflation can be an aspect of monetary policy but that also is helped by an increase in population. I think the days of 3%/year increase in real estate values are a thing of the past. Own stock in the SP500? How will the sales figures look with less people to sell to all the time.
I know I have brought this up. I am thinking about how it effects our economies. Do we invest in what for the long term? Japan is a head of everyone with this trend. Their stock market has been dead for 20 years. Real estate is just now perking up. You only want to be in the most prime locations are you are hosed.
|