Robin Holdings
June 7th, 2022
Stagflation is the economic situation where prices are rising and unemployment levels are increasing; within a context of economic stagnation. In this situation, there is no reduction in the monetary wealth of the population. On the other hand, hyperinflation is an inflationary situation out of control, prices increase rapidly and the currency loses its real value -purchasing power- and the population sees a significant reduction in its monetary wealth.
The world is currently experiencing a period of stagflation. This context will worsen as days go by and if countries and monetary policy makers do not take stable but aggressive financial measures, this situation could turn into a hyperinflationary scenario.
In this economically catastrophic situation, savings in international banking and the refuge of investments in safe markets -cryptocurrencies safeguarded in personal portfolios, commodities and real estate- are viable options. Associated with these two alternatives, it is suggested to open accounts in international banks in other currencies, creating substantial savings and benefiting from the variation of the parity between the different currencies.
In a context of stagflation, service providers benefit. This scenario has been observed in the last 18 months and has partially revealed an atmosphere of recession, represented by a reduction in the production of goods in different economic sectors.
The “financial analysts” have finally warned of this world economic recession and even put a date on it: August 2022. However, in this blog we have warned that the recession is months old and that it is getting stronger every day. Therefore, the economic safe havens we have advised are for medium and long term investments; but it is always good to seek more information and learn about them, some of which have been listed and described in this blog.
