According to a property expert friend of mine, the last time Australia experienced significantly high inflation (and high interest rates) was the 1970s and apparently property prices went down by a staggering 70 percent.
Apparently commodities do well in times of high inflation however when I reviewed copper charts dating back to the 1970s the copper price really went nowhere.
According to another property expert friend of mine, CPI is going to come in at higher than 7 percent so I shudder to think what is going to happen to tenants who have automatic CPI increases built into lease agreements. It’s not looking good.
Anyone have any thoughts on where to invest in periods of high inflation?
PS I’m still optimistic that copper will be an outperformer in the next decade irrespective of high inflation.
