aldo, "At the moment I think the "everything bubble" is dangerous and all the warnings have some validity. With all that being said though and having enough experience to understand opportunity I am happy to wait for a large correction and use that as an entry point for getting back into the market"
I heard all that and more than10 years ago. People pulling money out of investments and property because of perceived dangers. Then waiting as nothing happened. Our share market did nothing but our property market did. The US market went onwards and upwards.
All this courtesy of Central Banks experimenting with drastic untried measures.
I'd loath to give anyone advise as to what markets will do. This is a completely manipulated global economy by large and we don't know where the next black swan event will come from. It will come but maybe not as what we think.
We are heading into zero interest rate territory and, at a small inflation rate of say 1'5%, cash is in fact losing value. A $1 now will be worth less that a $1 next year. This is designed to force you to put your money into risk assets.
So very simply, sitting on the sidelines with a pile of cash will mean you will be losing money.
I would suggest you look at the US market since 2009 and see what stimulus via loose monetary policy has done. This year we could be at the 2009 juncture for our markets as the RBA seriously considers stimulus measures not involving 0% interes. It doesn't matter really what they try.
There's no safe option but my thoughts are it's better to lock your assets up in a grossed up yield bearing stock and enjoy life than sitting on cash and sinking as the pile deflates.
