SYSTEMS
It's a certainly that the worth of cash will be devalued by the money printing that will be needed to pay for welfare commitment.
The key questions of when, by how much and in what sequence can't be answered directly.
I have a lot of super money sitting there with the cash box ticked. I expect a few more tsunami waves will hit equities before I feel bullish enough to tick the global companies box. Further to there I'm not assured that fund managers will be unloading equity holdings in highly leveraged companies quickly enough. So I'm willing to take some possible loss on cash while waiting for the equities dust to settle.
I'm nervous about bonds because they are denominated in fiat currency and because interest rates can only go upwards from here and because some companies who have issued bonds will go bust.
Gold is a tricky one. It will hold value when equities and other investment classes decline but gold is also a consumer item and it's something that people and governments will sell if things get really tough. Gold for many is a rainy day fund but on this occasion the downpour is Biblical and global.
Others may have equally valid but different views to mine and no strategy is safe IMO. DYOR.
cheers
Originally posted by Osi
