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Home > The Property Voice > Soundbite: Inflation & Property – Don’t believe the hype!
Podcast: The Property Voice
Episode:

Soundbite: Inflation & Property – Don’t believe the hype!
Category: Business
Duration: 00:44:32
Publish Date: 2017-11-21 23:59:48
Description:

A few weeks ago, I spoke about asset bubbles. One of the things that puzzled me was how asset prices can run ahead of inflation. So, I have done some digging and come up with at least a partial explanation behind this strange phenomenon of property prices consistently outperforming inflation and average earnings. It’s not as simple as you might think and even today, I will focus on one dimension, which is mainly around the growth of the money supply ahead of consumer spending and consumer prices. So, if you are ready for a little historical, statistical analysis, then buckle up, maybe grab a notepad and listen carefully as we uncover some unseen truths behind asset price inflation.

Resources mentioned

UK Inflation data from the Office of National Statistics & Consumer Price Indices since 1960 & A really cool site that simply has really cool data!

UK Average Earnings Data

FTSE 100 & All-Share Index Performance

The Money Supply definitions

Interest Rate history through The Bank of England statistics archive

The best infographic on the World’s Money Supply I can find!

Life After The State – Audiobook by Dominic Frisby

Save Time, Save Money & Make Profit in your property deals with the Property Deal Tips service from The Property Voice

Link to the Podcast feedback survey

Today’s must do’s

Understand that asset prices are largely being driven by inflationary measures that are NOT tracked by official inflationary indices! Asset prices are being swollen by the growth in the money supply. So, monitor the true money supply to get a picture of how asset prices could change over time…and how bubbles can form potentially. Then, get yourself some of these assets if you want to avoid being left behind! Assets of course include property, but extend to stocks and shares, precious metals, bonds and other fixed interest deposits, and alternative assets such as art & collectables…and perhaps a little bit of Crypto-currency to hedge against a total collapse of the financial system as we know it…Remember, income feeds you for a day, assets can feed you for a lifetime </td> </tr> <tr> <td> Total Play: </td> <td></td> <td> 0 </td> </tr> </table> </form> <audio controls autoplay style= Your browser does not support the audio element.