In this way, almost all countries in the world are still cutting interest rates. Japan, the European Union and the United States have cut interest rates one after another, and countries such as the euro zone and Japan have substantially entered the era of negative interest rates. Denmark provided a mortgage of 10 years with an interest rate of -0.5%, which means that the customer mortgage to buy a house and the bank still paid back the money!
How about negative interest rate? Not so good at the moment. Because money only circulates in the financial market, there is not much money entering the real economy. Negative interest rates may not stimulate economic growth as central banks wish, but they will inevitably cause asset prices to skyrocket. Under negative interest rates, the rich are bound to make big profits, but ordinary people may not necessarily benefit. At least it is inevitable that the purchasing power of money in everyone's pockets will shrink.
In response to this trend, see Weijun for everyone to sort out several means of hedging currency depreciation under negative interest rates:
1, high-quality real estate in first-tier and quasi-first-tier cities. Don't be scared by the news of falling house prices in first-tier cities in various reports. This is only a special situation under special policies in a special period, and there are still a large number of people waiting to get on the bus with cash. The population of China is and will continue to be concentrated in the major urban agglomerations of China.
With so many people coming, can there be no place to live? If you want to live, you have to have a house, so how can the house price drop?
Unless China experiences the "lost twenty years" like Japan, don't expect the prices of high-quality real estate in first-tier and quasi-first-tier cities to fall. Moreover, even if there are signs similar to those in Japan in the past, there are many hedging measures that Japanese government officials do not have, such as a large number of state-owned enterprises, huge asset packages represented by state-owned land, and the Japanese government's ability to control the economy.
2. gold. Keynes, who once strongly criticized the gold standard as a "barbaric relic", had to admit that gold was the last emergency demand reserve, and many central banks, including China, were increasing their gold reserves.
As an ordinary person, it is neither necessary nor safe to buy gold bars under your pillow at home. It is much more convenient to buy paper gold.
3. Safe haven currency. Dollar, Japanese yen and Swiss franc are all good safe-haven currencies. The dollar is still a global hard currency and a traditional safe-haven currency.
The logic of the yen as a safe haven currency is quite strange. The yen has formed an arbitrage space because of the lower interest rate. When international financial institutions like to borrow cheap yen and leverage to buy assets. When the economy is uncertain, they sell assets and borrow yen. A large number of yen repayments in a short period of time indirectly pushed up the yen exchange rate. Over time, the yen has passively become a safe-haven currency.
Switzerland is still a permanent neutral country in the world. Moreover, China has an extremely strict bank secrecy system, and the Swiss National Bank independently formulates monetary policy. Therefore, Switzerland is considered as the safest place in the world, and the Swiss franc has long been regarded as a traditional safe-haven currency by investors.