Passive,Im coming to the conclusion that those property...

  1. 1,252 Posts.
    Passive,
    Im coming to the conclusion that those property investors on this forum who expect inflation to benefit their investment strategy don't really understand how/why inflation occurs and are making a huge assumption that its effects will arise like magic - from who-knows-where - and fix their problems.

    Yes, inflation has saved property investors for the past 40 years. But there needs to be a) the political will to implement it, and b) a market willing to accept it. b) is not happening, or rather, the resolve is crumbling. And, as a consequence, a) is faltering too! In other words, the markets rule!

    As for the South African example you provided - that is not inflation. That is a currency devaluing compared to another, and while a falling currency is sometimes a consequence of monetary expansion, a lot of times it isn't.
 
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