74

Not a crash, an adjustment. Because of the insane inflation, they have adjusted it periodically by dividing by 1000. Last one was March 2021. https://en.wikipedia.org/wiki/%C3%8Dndice_Burs%C3%A1til_de_Capitalizaci%C3%B3n


7

Home prices peaked in 2007 and then started to decline because of the 2008 Global Financial Crisis. In 2008 the Fed began Quantitative Easing. Median home value lost about 30% of their value over the next 3 years and it took another 6-7 years to surpass the 2007 high. That period demonstrates that it's not true that: When the government starts to do "...


7

Stocks in the Weimar hyperinflation are discussed in When Money Dies. I don't own a copy of the book but here is a link to a blog post about it. Speculation on the stock exchange has spread to all ranks of the population and shares rise like air balloons to limitless heights Basically, the stock market did very well (i.e. the US dollar value of stocks ...


5

Hyperinflation is almost always disastrous for the country that experiences it. Any country that expects it devotes any available effort to avoiding it, rather than mitigating its effects. High inflation affects different people more or less. Property owners are not the only group disproportionately affected: Anyone owning tangible assets comes off well. ...


4

Usually at times when inflation rate is high, the interest rates are high too (as it's the real interest rate that affects the supply and demand of money). So investing in a money market fund could very well protect you against inflation. However, do note most jurisdictions tax all returns no matter whether they are over inflation or not. So if your money ...


3

As a Brazilian I understand your concerns. To protect against inflation you only have two main strategies: You can invest in fixed income that fluctuates with inflation (e.g IPCA) You can invest in assets that do not follow the real (R$) First one is the more safe approach as you have a guarantee appreciation above the inflation. Usually you can buy ...


3

It depends on a lot of factors. In addition to the taxes & maintenance expenses already mentioned, you have to deal with the fact that house prices are driven by supply and demand. Looking at this century, buying a house in say Detroit would give you far different results than buying one in San Francisco. So can you reliably predict your local real ...


3

That's the risk the holder of the mortgage takes on when it agrees to a fixed rate loan. If inflation is lower than expected, the fixed rate mortgage is relatively more valuable. If inflation is higher than expected, the fixed rate mortgage is relatively less valuable. For the most part, mortgage lenders in the US, EU, etc. do not hold the mortgage for ...


3

This would proceed in a course that will have price growth in line with "regular" inflation. Hyperinflation requires inflation to rise by 50%. The UK does do a lot of exporting, so as the pound drops there will be more people demanding exports which will help the value of the pound. The UK exports 55 billion pounds and as the pound falls more countries will ...


3

This all depends on your risk tolerance. Preservation of capital wise just buying a basket of the stable global currencies and sitting on it will preserve capital well but lose to inflation in the medium/long term. Property is very hard to call and hedge as its a static, high deprecation asset that unless you are able to buy properties in numerous locations ...


3

In hyperinflation economies, I think it's incorrect to assume that such businesses somehow "know" how much to inflate their prices by as measured by some global "true" value. Instead, they reacted to the same forces that affect businesses today, namely balancing their expenses with what the market will bear (the primary difference being that there would be ...


2

Is it conceivable ? Sure. Almost everything is conceivable. It's not likely in the current environment but both economic and political conditions can change drastically and pretty much everything can happen: laws can be changed, constitutions can be changed, revolutions can overthrow governments, etc.


2

A mutual fund is a company which buys stocks. a mutual fund whose underlying is in american dollars Do you mean the stocks which the fund buys, are US Stocks, that is, on the Nasdaq and AMEX? For example let's say the stocks are Apple and Ford. What would happen in that scenario with the UK investor if he wants to sell Nothing exciting. The fund would ...


2

Hyperinflation, unlike 'regular' inflation, is inflation that is so severe that currency, and prices denominated in that currency, are pretty much irrelevant. Basically the 'price' of your house will go away - your house will be priceless - because you will not want any amount of the hyper-inflated currency. In this scenario, your house will still have the ...


2

Inflation is good if you have debt. The amount of debt stays the same, but the money you owe is worth a lot less. Additionally, the value of material assets tends to increase with inflation, may it be expensive art or homes. However, there are some caveats to this. First is interest rate. High inflation typically comes with high interest rates. If your have ...


2

The options available to you depend in part on whether you yourself are physically abroad or have plans to be. For example, if you moved to say...Japan to teach English for a year, you could establish residency (not necessarily long-term residency, but residency based on having a working visa sponsored by the Japanese company that hires you). You would ...


2

Real world example: in Weimar Germany, once the situation stabilized with the introduction of the Rentenmark (at the rate of 10¹² of the old Marks), older mortgages were reinstated at 25% of their face value.


1

There's a lot of balancing going on in an economy. Inflation, generally, is good for debtor (who can continue to earn an income) because they'll be advantaged by using future, less valuable dollars, to pay for capital they were able to use when it was more valuable. In extreme inflationary situations, huge parts of the economy begin to malfunction. Real GDP ...


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