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Interest rates

We were right and the Bank of England were wrong!

A little while back, four months ago actually, we wrote why we disagreed with the Governor of the Bank of England and the chairman of the Federal Reserve over in America. We were right, and they were wrong!

Back then, these pillars of finance believed that inflation was transitory. At least that's the image they portrayed. It is quite possible that they saw inflation as an ongoing issue but chose the transitory story to buy them some time in the aftermath of the economic disruption caused by the pandemic. Whatever the case, we saw back then that inflation was far from transitory. As we previously wrote, wages primarily drive inflation. Once wages are increased, they are very difficult to decrease again.

So now in a post covid world, with inflation soaring at the highest level we have seen for decades, what should we do as investors?

The days of cheap money through low-interest rates are numbered. The returns from the stock market are plummeting. Property remains attractive but prices are soaring somewhat uncontrollably. Against this background, it is difficult to see the attraction in traditional property investment. However, there is still a shortage of housing and there is still a growing population. These combine to make a strong demand in the rental market.

For experienced property investors, the years ahead will be tumultuous. There's no getting away from that. Yet the opportunities will be numerous for those able to spot them. Here at Lets Delight, we are changing focus to align with new opportunities coming about.

If you'd like to know more, get in touch. We always love to hear from people...

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