Economic crisis and inflation: Here’s how to defend yourself (and protect your savings)

heavy Economic crisis Crossed by the countries of the European Union, it stands out with the collapse of the euro, rising inflation and an alarming increase in the cost of raw materials and basic necessities, the latter closely related to the effects of sanctions against Russia. . As the storm continues, it seems difficult to be able to protect one’s savings, even if some insight can be used in some sectors.

regarding me Mortgages, those who have already obtained fixed rates should not undergo significant changes, given that the conditions were established at the time of signing the agreement. Any further increase in prices will not lead to changes, so it would be better not to act.

The situation is different for mortgages a variable rate, given that the benchmark index, generally the three-month Euribor, is set to rise rapidly in the coming months. In such cases, switching to a fixed rate mortgage can be the right solution, even if the original contractual terms and the existence or extent of any penalties are still being evaluated.

For those who have not yet obtained a mortgage, the ideal seems to be a mortgage fixed exchange rate, but it is clear that the conditions compared to the end of the year are more difficult. According to recent surveys by the Bank of Italy, the average cost of a mortgage has risen to exceed the 2% threshold. Among fixed and variable rate mortgages, the third method remains preferable, that of variable rate with Cap, which in the short term can allow access to variable comfort rates, while setting a cap that cannot be exceeded.

generally brick It is one of the preferred areas for investors in times of crisis. However, the revaluation of real estate prices may not be able to cover the increase in inflation. If this does not happen, the investment will turn into a drain. Without considering the fact that at the moment, with rising mortgage rates in general, a sudden stop in the real estate market, associated with a sharp drop in prices, it does not seem a far-fetched hypothesis. If so, bricks would not be an appropriate investment that could be relied upon to withstand the shock of inflation.

The repercussions of the crisis on public equities and securities in the direction of BTP for ten years have already been understood: from the momentinflation It exceeded the warning level of 2% in July 2021, in fact, it rose from 0.5 to 2% in just six months. But the worst is yet to come, given that the European Central Bank has already decided that it will stop buying shares in the public debt of member states, which will have to raise public bond prices to attract new investors.

For those who bet on stocks, the advice is to avoid gut reactions, try to diversify your portfolio as much as possible and not get caught up in the speculative sales wave.

Protecting against the crisis and rising inflation by leaving one’s savings firmly in the current account can be a compromise. Some banks offer alternative tools such as i deposit accountswhich provides for the limitation of capital for a certain period of time: the capital on which predetermined interest will then be received.

Buying safe haven assets, such asHe went, are among the most common in times of crisis: in general these tend to rise when markets experience phases of extreme uncertainty. Even the market for artwork, antiques, or luxury goods can in some cases be an option that can maintain the value of the thing you intend to invest in over time.

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