Hi Deirdre. I struggle with that question as well.
I recall in the latest podcast from Chris and Jim they touched on what they would advise doing. Paraphrasing:
- retain some cash in the bank
- demand greater returns in riskier times when weighing up an investment
The problem with that is:
A) inflation erodes the real value of cash in the bank; and
B) all well and good demanding higher returns but if they’re not available, what do you do?
The way I see it, they’re not bad suggestions in times of inflation but only because there are few “good” options. The other advice would be to lock in prices where you can and create as much price certainty as possible.
On a personal level, sometimes life’s circumstances thrusts a big spend upon you at a bad time. It’s hard to advise somebody with a young family to hold off buying a house or extending for some better time on the horizon, future date unknown. While they hold off, their lives are passing them by.
For example, would you advise holding off on buying a house because of interest rate rises? Or will the Irish market participants maintain their high wages while construction activity dry up as margins get squeezed, pushing costs up even more than where they currently sit? Who knows?
One thing is for certain though, there’s no political solution to this going to come out of the Dáil. And any attempt by a new government to borrow more to build will only serve to push up prices even more. More demand for the same scarce supply of construction resources, with the same overall quantity ultimately getting built.
ECB asleep at the wheel , the one job keep inflation at 2 % and it’s over 3 times that. Too much money printing and paying the price now.
I’m not sure what the headline re “70 percent expecting a recession in next 12 months” was supposed to do?
Should we
1. Start panicking? (A useful activity😂)?
2. Cancel any planned “big spend” ?
3. Change job to a “protected” industry?
4. Demand the government magically create available & affordable housing right now!
5. Demand an election so that SF get in ... they will solve everything.... right??😇
6. Ignore it - why talk ourselves into a recession?
7. Play the ostrich!!
Hi Deirdre. I struggle with that question as well.
I recall in the latest podcast from Chris and Jim they touched on what they would advise doing. Paraphrasing:
- retain some cash in the bank
- demand greater returns in riskier times when weighing up an investment
The problem with that is:
A) inflation erodes the real value of cash in the bank; and
B) all well and good demanding higher returns but if they’re not available, what do you do?
The way I see it, they’re not bad suggestions in times of inflation but only because there are few “good” options. The other advice would be to lock in prices where you can and create as much price certainty as possible.
On a personal level, sometimes life’s circumstances thrusts a big spend upon you at a bad time. It’s hard to advise somebody with a young family to hold off buying a house or extending for some better time on the horizon, future date unknown. While they hold off, their lives are passing them by.
For example, would you advise holding off on buying a house because of interest rate rises? Or will the Irish market participants maintain their high wages while construction activity dry up as margins get squeezed, pushing costs up even more than where they currently sit? Who knows?
One thing is for certain though, there’s no political solution to this going to come out of the Dáil. And any attempt by a new government to borrow more to build will only serve to push up prices even more. More demand for the same scarce supply of construction resources, with the same overall quantity ultimately getting built.
Sadly true, Sean.