What to invest in?

In a period when central banks keep interest rates low and try to make the level of inflation higher, in order to speed up the economy, the question emerges: What should we invest in? As long as the debt level is as high as today, there won’t be considerable increase in interest rates. Inflation can help governments in reducing the debt, but obviously this is bad for investors, because nominal investments may result in losing money. Consequently, real return can only be realised by investing in real assets in the future.

What does this mean? For instance if the interest rate on state bonds is lower than the level of inflation, the market will stop buying state bonds. Instead noble metals, e.g. gold will appear in investors’ portfolio, thanks to which the value of which may increase. Hungarian should also turn to investing in real assets if they don’t want to lose money.