Your Life Will Get Worse
Home-ownership is collapsing, wages have been stagnant for years, high-streets are closing with businesses bankrupting across the country. The three are linked and will result in the impoverisment of future generations.
Above you can view the disparity between the explosion in house prices and the stagnation of wages. This is a symptom of a growing underlying issue. Individuals, families and even goverments are falling into debt. For each person in debt there exists a person in credit.
Not everything is doom and gloom 📈
Stocks are going to the moon. The graph below depicts the S&P500, the world's most popular index fund. It allows investors to buy the top 500 companies in America weighted by their size. It's worth looking into the S&P500 if you haven't already.
This graph looks rather similar to the house price one doesn't it? Especially noteworthy is the explosion in growth in the last couple of years, at the same time that a new billionaire was created every 30 hours. For context a million seconds is 11.6 days, a billion seconds is 31.7 years. This is because the government (tax payers) gave £410 billion to allow people to keep paying their rent with the money flowing to those that own assets, without even considering the contracts worth over £15.3bn signified as high-risk corruption cases.
"COVID-19 was the largest transfer from the poor to the rich in recent history"
Gary Steveson (Former Trader at Citibank)
You don't have to work to earn money 💷
Money makes money. Hopefully you're familiar with the term passive income, this is the ability to generate income from a rental property or form of an investment that does not require activity. Passive income is great, it allows people to retire and reach their financial goals earlier than they otherwise would have.
If you feel like you're behind in investing or haven't got started yet then you're not alone. One third of UK workers are living payday to payday. Two things affect price, demand and supply, if stock and house prices are rising it's not because the supply is decreasing; therefore the demand must be increasing. Who buys assets? Those with disposable income.