Is now really the right time to invest?
We're living in unprecedented times, with so much uncertainty.
The corona virus pandemic has shut down major parts of the world economy.
We have social unrest in many cities in the United States, most notably, New York, which is the powerhouse of the international money market, and nations have had to borrow huge amounts of money, spending much more than they earn, with little knowledge as to how they will ever pay it back.
It's possible we're heading for a crash and the value of our investments could depreciate
So is now really a good time to invest?
Many people are being cautious and waiting to see what happens. I'm not so sure that's the right thing to do.
I'll tell you what worries me most, and it's not a crash.
I'm worried about the value of our money and its buying power - inflation.
Inflation has been at historically low levels for over a decade.
Nevertheless, before COVID-19 broke, countries were already highly indebted.
Yet their debts were mostly under control with plans to gradually reduce the deficits.
Unfortunately, the pandemic has forced governments to spend uncontrollably.
Deficits have unimaginably ballooned and governments have not even begun to think about how we will pay it back.
Once the pandemic is over, governments will have to scale back spending and consider ways of paying back their debt. Tax rises and public spending cuts will be considered, but they are unlikely to be enough and might cause even more damage.
It is likely, therefore, that governments will be forced to resort to quantitative easing, better known as money printing.
Get ready for inflation and the devaluing of our money!!!
So even if the worst happens..and there is a crash, and house prices do drop, that will only be short term. But if you have cash and it becomes devalued, you have lost an unrecoverable asset.
This is what we should be concerned about
SO: If you have the resources now and are looking for a long term investment, I would definitely invest it in property in central Israel, especially Anglo areas.
Doing nothing because of uncertainty, may cost you more in the long term.
This is just in my humble opinion of course!!