Just not too long ago, many economists were worried about inflation due to many countries printing money and starting the similar QE programs. A few months ago, oil crashed, and this changed the whole equation. Now, the same economists are talking about a possible deflation in most countries. Lately, we have seen countries launching their own programs whether through interest rates or currency to prevent their economy from falling into deflation.
Yesterday, Monetary Authority of Singapore (MAS) said it will let our Sing dollar to appreciate at slower pace, news from channelnewsasia. The core inflation is also down from the earlier forecast of 2 to 3 percent. For the longest time, we have always been told that one need to own assets like property, commodities or gold to protect oneself from inflation. With the latest action from MAS, what do we need to do and now with a possibly sign of deflation, what do we do?
Cash/USD
Remember cash is 'king', no matter which situation you are in. It's without doubt that USD is still a global recognised and traded currency, one which investors like to have in times of uncertainty. I mean USD has performed strongly against major currency and looking at all the positives signs on the US economy, what is preventing the USD from moving up some more.
Buy High Good Dividend Stocks
Whether is it inflation or deflation, we still need to buy things that we need to us daily, these will be good sector to look at. It will be even better if one is able to find valued high dividend paying stock. Just not too long ago, Asia superman, Mr. Li Ka Shing ramped up his huge purchased of assets in the UK, especially the Utilities asset. Is he preparing for deflation too?
Let's see how this will turn out and I guess no point trying to predict, we will know in time to come.
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