June 2022 Investing for passive income

Inflation is here and my portfolio has really suffered, it has dropped from the dizzy highs of £900 to around £300 in just a few weeks.

I believe this is only the tip of the iceberg and the coming few years are going to see the erosion of household wealth pushing the country into a deep recession.

My reasoning for this is simple, in December 1990 the inflation rate hit 9.2%. The bank of England had interest rates at 13.8% and average mortgage rates were around 10%.

Compare these numbers to our current interest rate of 1.25% and average mortgage rate of 2.5%. We have a long way to go before the economy is rebalanced. The increase interest needed to combat inflation will be devastating for the households, particularly in the short term.

There is a silver lining though and despite my portfolio taking a big cut in profit, my dividends have gone through the roof, bringing in a total of £87! My way of investing whilst slower means that during tougher economic times my Blue-Chip companies are more likely to emerge from the recession!

For a better look at my portfolio take a look at my latest video.

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