phishpheet, maybe the stock market stays flat or goes down in real terms for 15 years. It has happened many times before.
At least Watford & I get our FCLPA returns in preference to FCL shareholders, both as to income & capital. And we are guaranteed 100 cents in the $ - one day.
The better question to FCL -v- FCLPA is overall asset allocation. Generally speaking, most Australians have too much of their net worth in the family home & Australian equities.
If you are serious about wealth preservation, the first decision is asset allocation between property, equities & fixed interest; then exotics such as currencies & commodities. Many of these decisions depend upon your age & stage in life.
One thing is certain, there are no guarantees & our love affair with equities & residential real estate may be over for a very long time. If you are under 35 this may be a revelation to you - but in the long run (30 years) it won't matter.
Cheers
FCL Price at posting:
42.0¢ Sentiment: Hold Disclosure: Held
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