The return on a real estate investment with a horizon of 20-25 years is better than the return on an investment in stocks. Real estate is both a liability and an asset – it depends on what you take it for and how you use it. If you take it with a long horizon with no intention of selling, it remains a liability from the point of view of your wallet and the money in your pocket. If you take it in a period when the price is acceptable and you have a horizon of 5-8 years for realization, it becomes a very wonderful asset. This is what Kristiyan Fezelov, risk analyst at Kapman Asset Management, said in the show “Investor Club” with presenter Ivaylo Lakov.
A good investment strategy involves diversifying into several places – a little in currency, a little in gold, a little in stocks. Timing is also important – when will a person enter the market, how long will he stay and when will he exit. Now the timing is not very good and the option is to keep money in cash or in a bank. Real estate has its value even when the market stagnates, because in the United States and in Great Britain the markets have stagnated a lot, the interlocutor noted.
“In the perspective of 20-25 years, the real estate still has its future”, stressed Fezelov.
The most important factor at the moment that investors are watching is inflation, with inflation remaining at roughly the same level in the European Union. This means that in this month we will expect what is planned by the European Central Bank to increase the interest rate.
“The control of inflation is not happening. This has been shown by Spain, as well as France and Germany. The general indicator for the European Union is that it has been at the same level since January. So what the ECB has set for an increase in the interest rate, it will happen and will continue to happen until the processes are under control,” the analyst said.
As for the stock market, there we will expect a fall in the main indices, which means a decrease in stock prices, the interlocutor pointed out. “This is inevitable. Not only for Europe, this also applies to the United States,” Fezelov pointed out.
I wouldn’t advise buying bitcoin now, even though it has regained some of its value. The problem is in the state electronic money, which is preparing to be released, the interlocutor also said.
More about the automotive sector and the inclusion of artificial intelligence in models, as well as whether there will be another rise in the price of oil, you can watch in the video of Bloomberg TV Bulgaria
This material is not a recommendation for an investment decision.
