interesting read-all that charting information however i would like to discuss what might create a radical chart movement-
as a young ambitious person 25years ago, i watched people about to retire loose 90% of the real value of lump sum superannuation.
this occurred because of rapid growth in credit expansion and wages,so for eg. my income in 2.5 years back then increased by 1100% this did not occurr because of the fundamental dynamics of my ability or position,it was massive inflation wages moved ahead of real estate allowing my wife and i to pay off a home in a good area of western sydney in 2.5years,yes we both had well paid positions even by the standards of the day.
however those who retired in that period had their lifetime superannuation benefit eroded,the annuity style income it provided was ultimately worth little more than the age pension benefit,within 5years of retirement all these people had the age pension and no lump sum superannuation,the only notable exceptions were those who had accumulated a real estate portfolio of substance and they were less than 1%
so thats the history part---now for the future possibilities
in the western world superannuation has become a major influence in the financial world,it is constant and funds are constantly seeking to gain returns for members to ensure growth in funds for their future retirement and hopefully a retirement unassisted by government funding.
those retirement funds have contributed to the availability of funds for loan,the liquidity of sharemarkets and bond markets,in fact all manner of financial instruments creating a whole new multiple of finance related advisory services., and also those funds that merely trade the margin within those instruments.
why is all this so important,it has made a substantial contribution to leveraging, a great deal of our wealth now rests in data as binary code,not gold ,but binary code representing our wealth that is the worlds financial system.
all these funds in competeing for market share have assisted in moving stocks to unbelievable multiples and i guess interest rates to incredible lows through competition for market share.
now the question ,one really of many, but this question relates directly to the impact on funds worldwide,when fund members that being individuals like you and i,have a change of outlook through downgrading of company and fund forecasts ,which should occur over the next three months or so and individually instruct our funds to move from a equity or bond exposure to cash,
should that arise in a unilateral manner funds would be required to sell down,to adjust the asset mix,now that will create a real movement in a chart,we have the largest group of wealth holding individuals throughout the developed world moving into the retirement years----the baby boomers
so as they say be afraid be very afraid,the mechanics that create the chart are of far more significance than the line it creates,this would be a dramatic deleveraging and i guess you would have some name for the line it creates which will not have any impact on the outcome
(20min delay)