If those money fleeing properties in Syd/Mel or any major cities around the world came true, where would it flee to? Jap Bonds or perhaps Swiss ones?
I think the direct comparison to the Big Short miss some other evidence and that is every market was in euphoria in addition to very cheap money created by Greenspan by 2007, all looking for a rising returns from property to stock markets. There were a plethora of opportunities in ALL markets to make a good returns pre-GFC.
Fast forward especially 2016, Resource stocks are out and maybe properties for opposite reasons. Stockmarkets are generally highly valued and bond prices are exactly why the yield has collapsed! Where else are you as a professional fund manager going to put your funds? Bottom picking dead sectors or follow the trending ones up?
I know where I would put mine, in cash, industrial, health care, REITS, gold and financials which I have done since last year. Not able to put into bonds except through a bucket shop so that is definitely out! Spread the portfolio so if the SHTF regarding market crash, you can sleep at night! I don't want to brag but my no brainer strategy looking for only trending stocks have saved my a a lot of times up 25% as of lastweek. No major gloat here since some gold stocks from other posters are multi baggers but I am looking for sleep well exposure that does not need pampering or babysitting. Sure you can jam all your exposure into gold and you'll be high fiving for the past 3 months but just remember those poor suckers doing the same at $1900 on yesterday's darlings back then were the superstars!
Even I was high fiving BIG TIME until Fukushima set me straight in one HIT!! I remember that well, my second GFC except it was the BEAR Stern/Lehman all on a Friday evening watching Sky news on that explosion of the reactor. There wasn't even time for panic attack come the following Monday open! I timed it correctly for the U revival almost perfectly to the year. I still occasionally visit some of my old favs and they are still dead 5 years on. Value wiped out just like yesterday's gold darlings!
Sorry dunno why I like patronising people! Just constant reminders for myself.....
