Today we will talk about interest rates and inflation, the two hot topics of conversation in the investment world. I will try to simplify these two topics in a simple way and link it with your financial life.
The vast majority of views that we read in newspapers and blogs offer some form of asset allocation advice based on these 2 parameters. A simple retail investor like you and me will definitely get confused.
“To complicate is simple, to simplify is complicated. Everybody is able to complicate. Only a few can simplify.” ~ Bruno Munari
Before we discuss interest rates and inflation, a story comes to mind.
My wife and I really like to go for long drives. It just relaxes both of us. In fact, it’s the only common interest between the both of us.
For these long drives, we do some basic checks with the car and environment – whether it is raining or not, food, water and comfortable clothing. Since music is now streamed via the Internet, we don’t need to worry about CDs…