More on this book
Community
Kindle Notes & Highlights
by
Andrew Craig
Read between
September 2 - September 22, 2020
To get a truer picture of things, smart investors will do their best to look at a much longer time frame, difficult though this may sometimes be. If we do this, we will see that, as with any asset class,
The point here is that if you want to build wealth you must always be thinking about comparative value and purchasing power.
esoteric.
Of the 16 biggest trading currencies in the world, the pound has been the worst-performing currency against the US dollar for the last several years.
many of the important things this person may want to buy are priced in dollars (for now at least): oil, gas, rice, wheat, cotton, copper, timber, shipping – the list goes on and on.
five years ago.
wtfff???©#%€*
It is a number that you can then use to compare the returns on property to any other asset you might be thinking about, including shares, commodities, bonds or alternative properties.
interest rates are at a 300-year low at the moment,
Social changes such as large-scale immigration from relatively new EU countries such as Poland, higher divorce rates, and more young people wanting to move out of their parents’ homes to live alone have created a higher demand for many types of property.
‘cascade effect’
pastiche
vignette
‘exogenous
facet
There is a ‘Mexican stand-off’ as sellers refuse to accept that their property might be worth less than the high valuations their estate agents have given them in the past, while, for their part, potential buyers simply cannot afford to pay that price.
In France,
the total of an individual’s monthly mortgage and other debt payments should not exceed one-third of the buyer’s gross monthly income.
structural changes in the banking sector, mortgage approvals were increasingly a centralized form-filling exercise, with borrowers no longer having any sort of personal relationship with their bank manager.
book.
lol
The US and UK property markets became a big game of musical chairs.
Alan Greenspan,
bull market
John Maynard Keynes said: ‘The market can remain irrational longer than you can remain solvent.’
edifice
The exceptional growth in the developing world I have discussed above has created thousands of new millionaires and a large number of new billionaires,
Russian oligarch who – after paying £65 million for a property in London not that long ago – would now accept £25 million and has yet to find a buyer.
fallacious
Recent changes to stamp duty in the UK have reinforced this reality.
negative equity.
See your new extra 10 per cent (or more) of cash as a debt-destroying laser beam.
As Bill Gates has said: ‘Most people overestimate what they can do in a year and underestimate what they can do in ten years.’
inertia.
In 2012 one of the major UK banks was fined several million pounds for mis-selling a product to pensioners.
Work out what you need to live on each month, add a margin of error, and then ensure that any surplus is automatically paid every month into accounts that will enable you to make real money.
big confidence trick or pyramid scheme that is at risk of collapsing at some point in the future.
When the Japanese launched their generous welfare state after the Second World War there were around 45 workers for every pensioner. This ratio is forecast to be 2:1 by 2020.
Nikkei
governments all over the developed world have consistently spent far more than they have earned in tax receipts.
borrowing on global bond markets
‘inventing’ money out of thin air (quanti...
This highlight has been truncated due to consecutive passage length restrictions.
finance is such an unpopular subject.
Australia and Norway are wonderful exceptions.
Norway has done a fantastic job investing the proceeds of its oil industry.
Australia’s world record-breaking 26 years (!) without a recession
‘austerity’
final salary pensions
parlous
2008, when the Argentinian government passed a law to nationalize $30 billion of private pension money.
ISAs
bullion
