Added: 3 years ago
From: ofInterestNZ
Views: 2,234
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  • Talk of "real terms" obscures the reality we in a nominal world. This graph can also be used to show how "real wealth" eroded in stagflationary times while their nominal wealth seems to increase. Right now, what should a person cashed-up and debt-free do? Should we buy assets now? Or wait? It's a balance between erosion of their cash wealth by inflation and the possible increase in their 'real' purchasing power as the price of major assets falls faster than inflation erodes their milk money.

  • agreed, but statistics do that, there just a referance, as the trend goes, kiwis dont change much about the way they spend there money unless the market drys up or the product changes, but that ballance is always the hard part of looking into a market value, looks like a good time to sit and wait for the market value to decrease, safe as houses.. im young enough to pay of a 30 yr morgage before the next boom

  • I'm 5 and have already spent far too many years paying interest to banks for my tiny portion of equity. Looking back, i regret those 25 year mortgages. I should have had a 10 years mortgage and eaten 2-minute noodles. I would have twice the capital I have today.....and then some. Interest is a cancer on your life and potential wealth. Debt sucks. I have none now and I'm in NO hurry to borrow again.

  • I hear ya, but to more you look, the more you learn

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