UYal's blog

Why do asset markets keep rising?
Why don’t they just crash and stay down?
Why is there this unshakable belief that, eventually, prices will recover—and even go higher?

It’s not just blind optimism.
It’s because the system itself is designed to never allow prolonged asset deflation.

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💸 1. Cash Melts, Assets Float

We already know this:
Money loses value every year.
The 2% target inflation rate isn’t random—it’s deliberate.

Governments want prices to rise slowly over time.
Why? Because deflation is far more dangerous than inflation.

Deflation freezes consumption.
Debt gets heavier.
People stop acting, spending, building.

That’s economic death—for politicians, corporations, and households alike.

That’s why when asset markets wobble, governments step in.
Because asset prices are approval ratings.

If real estate, stocks, and corporate valuations tank, voters panic.
So what do policymakers do?
They inject liquidity—quantitative easing.
Markets bounce back.
Retail investors pile in late.
Assets begin their upward climb once again.

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📉 2. Declines Are Moments. Recovery Is the System.

Corrections happen.
Sometimes we can even predict them.
But we can’t time the bottom.

If you think, “It’ll fall more,”
chances are, it’s already rebounding.
If you think, “This must be the bottom,”
one more leg down is probably coming.

Veteran investors eventually stop timing the market.
Instead, they bet on the system:

“Markets always recover.
So all I need is the readiness to buy when they fall.”

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🐍 3. Inflation Is a Monster—But the System Is Bigger

Yes, inflation is a problem.
Real wages shrink.
Daily life gets harder.
Currency quietly melts away.

But here’s the irony:
People hate inflation,
but governments fear deflation even more.

So what survives is this quiet, unspoken equation:

Sustainable, controlled inflation = Upward-trending asset prices

In other words:
The system ensures your money loses value—
so that your house doesn’t.

(📌 Welcome to Korea, where “assets” basically means real estate, and stocks are just bonus side quests.)

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🧭 4. In the End, Only One Thing Matters

Even knowing all this,
we still mess up the timing.

Opportunities appear when we have no cash.
And when we finally have liquidity, it feels too early to act.

So what do we really need?

• Liquidity: The readiness to act when others can’t.
• Patience: To move at the market’s pace, not our own.
• Courage: To take a step forward when everyone else is afraid.

“Markets recover.
Even those who understand this struggle to hold on.
In the end, only the patient survive.”

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📌 Next Up:
“Why Inflation Is a Silent Tax – The Structure That Slowly Melts Your Wealth

#Inflation #Deflation #AssetMarket #RealEstate #InvestmentStrategy #QuantitativeEasing #PatiencePays #LottoEconomy #KoreanEconomy #FinancialPhilosophy

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