A Fin24 user wants to know about property and bond investments. He writes:
Is there any relationship between property and bond investment? How does inflation affect the two?
Simon Brown, a financial educator of JustOneLap, responds:
Typically, as inflation moves higher interest rates would also increase.
Currently the world is in QE (quantitative easing) mode so that theory is slightly broken, but reality will return eventually.
As for bonds vs property, there is a link.
Investors wanting yield (income) from their investment will move to which ever offers the better yield.
So if bond yields are increasing property will be under pressure.
- Fin24
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Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.
Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
Is there any relationship between property and bond investment? How does inflation affect the two?
Simon Brown, a financial educator of JustOneLap, responds:
Typically, as inflation moves higher interest rates would also increase.
Currently the world is in QE (quantitative easing) mode so that theory is slightly broken, but reality will return eventually.
As for bonds vs property, there is a link.
Investors wanting yield (income) from their investment will move to which ever offers the better yield.
So if bond yields are increasing property will be under pressure.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.
Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.