Rising asset prices are inevitable

Yang Rui Bosera Fund chief strategist, general manager of stock Investment department, mixed group investment director, Bo Time Balance fund manager.　　Graduated from Nankai University Institute of International Economics, Ph. D. in economics, and joined the Bo in August 1999. Chief strategist of Bosera Fund company, general manager of the Stock investment department, Bo-time Balance Configuration fund manager Yang Rui in the "China Certificate Country Letter 2009 Taurus Strategy National tour" Beijing station, said the keynote speech, that the world's main central banks are in the relaxation of liquidity, are in the asset price increase to provide "bullets",　　Rising asset prices are inevitable. Yang Rui focuses on the relationship between interest rates and asset prices. He cited a Japanese example, in 1999 when the Japanese interest rate was 0, when the international market in the popular hedging trade, that is, borrow Japanese money to invest in other parts of the world. "Bullets" are provided by Japan, with the goal of the world. Now 10 years later, with the exception of China, the US, the European Union, including Japan, have an interest rate of almost 0 to 0.25, the equivalent of a global "bullet" that targets an economy that is growing. Yang Rui also contrasts the size of the real economy and the virtual economy. Now that the global real economy adds up to Guixing, he says, the monetary and virtual economies are far bigger than the entities.　　The result of this comparison is that asset price inflation is inevitable. The relationship between interest rate, asset price and inflation is further deduced by the divergence between real economy and fictitious economy Yang Rui. He cited an example that this year, oil prices from more than 30 dollars to about 70 U.S. dollars, in fact, this year's economy is not particularly good, obviously not the real economy driven.　　The CPI, he argues, is an indicator of the heat of the real economy, and since the real economy is not overheated, inflation is hard to produce. Since interest rates do not necessarily lead to inflation, but interest rates still exist, where does the money go?　　Yang Rui that the entire logical derivation could come to the conclusion that money must be in the middle of asset prices, and that the eventual rise in asset prices could spread to inflation or not, but the value of the asset would surely have gone up. Therefore, Yang Rui put forward the strategy of investment allocation according to the change trend of asset price, and the change of asset price is also a problem of wealth change. Yang Rui said, "When the wind blows over, pull the sail more full, more full." Focus on which assets will change in value as liquidity is plentiful. Yang Rui said that he managed the fund a quarterly distribution, including real estate, gold, high-end consumer goods, the other is very few, are based on the changes in the value of assets to configure.